Star Cars Limited (02993937): administration
- Status
- Administration ended
- Administration began
- 2018-08-10
- Administrators
- Kikis Kallis, Andreas Arakapiotis
- Administrators' firm
- Kallis & Company
- Incorporated
- 1994-11-24
- Location
- London
- Industry
- 49390 Other passenger land transport
Why it went into administration
- HMRC / tax arrears
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Competition / price pressure
From the administrators' statement
• The Company was set up by Mr Keith Parkinson in 1994. It operates a dedicated transport service for local government, corporate bodies and private organisations. Primarily operating services for local councils in the London area and surrounding counties in transporting Special Educational Needs children (“SEN”).
• During August 2016 to July 2017 the Company lost some of its contracts which resulted in turnover decreasing by some £700,000. However costs remained relatively unchanged and did not drop in line with the turnover. Additionally, during this period the Company employed an in-house accountant bookkeeper. VAT returns were completed and filed incorrectly and accounts were prepared with errors. The management accounts for year ending May 2017 presented to the directors showed a loss of £174,000 when in fact the Company had made a loss of some £400,000. This made it difficult for the directors to have a clear picture of the Company's financial! position at the time.
• As atesult of the cash flow problems, the Company accrued a significant liability to HM Revenue & Customs (“HMRC”) relating to PAYE and VAT.
Administrators' statement of proposals (2018-10-22) · Companies House register