# Sunline Direct Mail Limited (03341560)

> Why UK company 03341560 went into administration, from the administrators' statement filed at Companies House, by companydig. Interactive version: https://companydig.co.uk/company/03341560

- **Status:** Administration ended
- **Administration began:** 2018-06-26
- **Administrators:** Simon Robert Thomas, Tom Straw
- **Administrators' firm:** Moorfields
- **Formerly:** Howper 207 Limited
- **Incorporated:** 1997-03-27
- **Location:** London
- **Industry:** 82920 Packaging activities

## Why it went into administration

- Funding withdrawn / unable to refinance
- Loss of a key customer, supplier or contract
- Sustained trading losses

## From the administrators' statement

Sunline had been under pressure in recent years due to declining demand and in 2017 suffered the loss of several key customers. Despite this, Q1 2018 sales were positive and in line with budget, however Q2 sales had been impacted significantly by GDPR implemented in May 2018. The new framework for data protection laws has significantly reduced the volume of potential customers to which companies can distribute marketing materials.

The Company had made significant investment in the Cync division in recent years, including a move to separate premises in Nottingham However this division did not grow as quickly as planned and was loss-making, applying additional pressure on cash flow.

An advance rate of 100% on the ABN Facility meant the cash flow was entirely reliant on sales Creditors had become stretched, PAYE was not paid in May and, based on cash flow forecasts prepared by the Company, June VAT could not be paid The June — August period is typically always tight from a working capital perspective, given the seasonality of the business, and there was a significant funding requirement to trade through this period. Furthermore, the long-term effect of GDPR on sales was unknown, adding to the uncertainty over the Company’s viability. The Company’s shareholders and investors, CEPS, confirmed they would not provide further funding and the Company was unable to raise alternative finance to trade out of the situation.

Statement of proposals: https://find-and-update.company-information.service.gov.uk/company/03341560/filing-history/MzIxMTgzNDExNGFkaXF6a2N4/document?format=pdf&download=0
Companies House register: https://find-and-update.company-information.service.gov.uk/company/03341560

Contains public sector information from Companies House, licensed under the Open Government Licence v3.0.