WTB Trading Limited (03593372): administration
- Status
- Administration ended
- Administration began
- 2012-11-23
- Administrators
- Stephen Gerard Clancy, James Saunders
- Administrators' firm
- Kroll
- Formerly
- Burdens Ltd.; W.T.Burden Limited; WTB Group Limited; WTB Holdings Limited
- Incorporated
- 1998-07-06
- Location
- Manchester
- Industry
- 46130 Agents involved in the sale of timber and building materials
Why it went into administration
- Competition / price pressure
- Credit insurance / supplier credit withdrawn
- Funding withdrawn / unable to refinance
- Creditor pressure / legal action
- Property / lease costs
- Sustained trading losses
- Weather / natural events
From the administrators' statement
Soon after the Scheme concluded, the UK construction sector the Company operated in suffered a significant downturn as a direct result of the global financial crisis This initially ied to significant losses although through a number of cost saving initiatives the business was re-stabitised to break-even including the costs of interest and dividends
Both the Company and the wider Burdens group sought to diversify into growth markets or areas where economies of scale and efficiencies could be gained Improved working capital management and underlying cash generation permitted the Group to invest in new ventures Following which a significant proportion of the obligations to Loan Note holders were repaid, under the terms of the Scheme, a payment schedule detailed payments to be made in April and October of each year from 2009 to 2015 These payments were made up to October 2011 However, whilst there was some recovery of turnover in core markets, competition intensified and profit levels soon stagnated
Alongside these developments the Directors considered that the status and appetite of the two major lenders changed significantly and whilst fully secured, both became increasingly concerned about their position Their concerns included the exposure to a sector at risk from reductions in public expenditure, discomfort with the constitutional commitment to shareholders and Loan Note holders and the role, structure and motives of the board The Bank of Scotland Pic relationship had migrated to LBG who the Directors considered were uncomfortable with the property based legacy of the relationship
Administrators' statement of proposals (2013-01-24) · Companies House register