Pipeline Engineering & Supply Co. Limited (03341992): administration
- Status
- Administration ended
- Administration began
- 2022-04-14
- Administrators' firm
- Kroll
- Formerly
- Quickapply Limited
- Incorporated
- 1997-03-27
- Location
- Manchester
- Industry
- 22290 Manufacture of other plastic products
Why it went into administration
- Funding withdrawn / unable to refinance
- Sustained trading losses
- Management failings / irregularities
From the administrators' statement
Prior to appointment, Circor, identified a number of accounting irregularities in the Company’s reported financial results spanning a period of four to five years which initial investigations suggest could amount to cS$40million. The then financial director was put on immediate leave and investigations are ongoing with the SFO and SEC given the parent’s US listed status. In light of the ongoing investigation into the financial misstatements we are unable to provide any further detail on this until all investigations have been concluded.
A detailed review of the underlying business and profitability was instigated by Circor to determine the performance and possible strategic options. The outcome of the review found that the business was loss making as its cost base and infrastructure was not aligned to the revenues the Company was purportedly generating.
Circor had made substantial investments into the Company over a number of years and further significant investment to fund the Company’s cost base and losses would have been required to keep the Company operating as a going concern in the short term.
Administrators' statement of proposals (2022-06-13) · Companies House register