Electric Sales Ltd. (03516028): administration
- Status
- Administration ended
- Administration began
- 2014-11-13
- Administrators
- Colin Ian Vickers, Christopher David Stevens
- Administrators' firm
- FRP Advisory
- Incorporated
- 1998-02-18
- Location
- Brighton
- Industry
- 59133 Television programme distribution activities
Why it went into administration
- Cash flow / liquidity pressure
- HMRC / tax arrears
- Competition / price pressure
From the administrators' statement
The Company was incorporated in February 1998 to undertake the distribution of titles owned by the connected company Electric Sky Productions Ltd ("ESPL”) together with titles owned by third party producers under license to various broadcasters globally At the time of entering administration the Company acted as distributor for approximately 80 independent producers selling a range of about 600 titles.
The Company had a successful track record for marketing and selling, primarily under license, through the use of its website, the programmes comprised in the back catalogue to broadcasters. Summary trading results for the financial years ending September 2012 and 2013 were positive, with turnover increasing from £3 1m to £3 Sm and net profit increasing from £25k to £271k respectively However, despite the positive movement in revenues the inter-company exposure was also increasing with the Company being owed £1 8m by related parties at September 2013
A slowing down in the distribution market in 2014 began to have an adverse impact on the Company's financial position. The subsequent removal of the Company’s overdraft facility reduced the working capital position by £300k putting significant cash flow pressure on the business To manage
Administrators' statement of proposals (2015-01-14) · Companies House register