W P R Building Supplies Ltd (03496279): administration
- Status
- Administration ended
- Administration began
- 2012-02-08
- Formerly
- Warrington Plastics and Roofing Ltd; Warrington Plastics Ltd
- Incorporated
- 1998-01-21
- Location
- Altrincham
- Industry
- 5190
Why it went into administration
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Over-expansion / investment not recovered
- Competition / price pressure
From the administrators' statement
The Company was incorporated in 1998. Mr M C Edis decided to form the Company with Ins father having previously worked for a supplier of UPVC plastic. The Company traded very successfully from the beginning Mr Edis’ sister, Mrs J Lamonby, also became a director in 2001. In 2002, the Company moved into its current premises as part of an expansion programme. Trade continued to do well
The Company’s first setback was in 2003 when a tool that had been developed to make plastic caps for roofing tiles was found to infrmge a European copyright. This cost the Company somewhere in the region of £140,000 taking account of development costs, legal costs and payments to the copynght holder. A new tool was developed which proved to be successful
During late 2003/early 2004 the directors’ formulated a plan to buy an off-plan villa in Spain. The directors’ paid the deposit by withdrawing funds from the Company via their director’s loan accounts and financed the balance with a mortgage 1n their personal names. A further two villas were purchased in this way. It was envisaged that the director’s loans could be repaid when the properties were refinanced upon completion. However, there was an overrun on the build of 18 months with the last villa being completed in 2008. By this time, the global credit crunch had set in leading to a substantial decline in property prices. This left the directors’ unable to refinance the properties which in turn left them with large overdrawn balances on their director’s loan accounts.
Administrators' statement of proposals (2012-03-30) · Companies House register