P. K. Engineering Limited (03183110): administration
- Status
- Administration ended
- Administration began
- 2019-03-18
- Administrators' firm
- Begbies Traynor
- Incorporated
- 1996-04-04
- Location
- Southampton
- Industry
- 28990 Manufacture of other special-purpose machinery n.e.c.
Why it went into administration
- Rising costs / inflation
- Cash flow / liquidity pressure
- Creditor pressure / legal action
From the administrators' statement
As previously explained in our SIP16 disclosure, further provided at Appendix 4, the Company has experienced a decline in its turnover in recent years for a number of reasons but the key issues are the loss of work as its customers outsourced their work overseas, an issue with the installation of a new piece of machinery and rising material costs.
The Company has been supported during these difficult times by its major shareholder but in 2018, it got to a level where the shareholder was no longer prepared to fund the losses. In November 2018 a number of items of plant & machinery were sold but given the level of losses that was being incurred each month, these additional funds were quickly exhausted.
Creditor pressure was becoming acute in the period leading up the appointment of administrators; particularly in respect of the communications received from HM Revenue & Customs. Ultimately the Board of Directors did not want to worsen the position by continuing to trade, especially given that Begbies Traynor (Central) LLP had advised that the Company was insolvent as it was unable to pay its debts as and when they fell due.
Administrators' statement of proposals (2019-05-03) · Companies House register