G & M Power Plant Limited (04094653): administration
- Status
- Administration ended
- Administration began
- 2015-07-31
- Formerly
- Bigfish Ventures Limited
- Incorporated
- 2000-10-23
- Location
- London
- Industry
- 27110 Manufacture of electric motors, generators and transformers
Why it went into administration
- Bad debts / customer insolvency
- Sustained trading losses
From the administrators' statement
The Company was incorporated on 23 October 2000 and specialised in the manufacturing of bespoke marine, industrial and commercial generators The majority of the Company's business activity was operated from its premises at Magnet House, 31 Anson Road, Martlesham Heath, Ipswich, Suffolk, IP5 3RG
Details of the Company’s recent accounts are attached at Appendix 1 The Company had generated a consistent turnover of between £5 8m to £6 8m since 2008 However, the Company had struggled to make a profit, with a profit only being recorded for the period ended 31 March 2012 The Company had worked hard to achieve three core customers, who placed regular high volume orders However, due to the nature of the work the Company performed, there was no certainty as to when orders would be placed by customers and there were long lead times with orders placed, resulting in the cash flow of the business being unpredictable The Company tried very hard over the years to attract new customers but was not as successful in this exercise as was necessary for the survival of the business
The directors looked at various methods to reduce their overheads and a decision was made in 2012 to purchase the shares in G&M Acoustic Solutions Limited (‘GMAS”) GMAS designed and manufactured acoustic canopies and containers for industrial generators The acquisition was made to enable the Company to gain contro} of this element of its supply claim, with a view to expanding third party sales and creating a profitable subsidiary However, following the acquisition it became apparent that GMAS required substantial time and investment due to staffing and health & safety issues As such, rather than becoming a profitable subsidiary, GMAS became a drain on the Company both in respect of time and financially This included the Company and GMAS entering into a joint banking facility with HSBC ple In relation to an overdraft totalling £500,000 between the two companies, which has since been reduced to £400,000 A cross-company guarantee was provided by each company over the other’s overdraft Historically, the vast majority of this joint overdraft facility was used by GMAS and guaranteed by the Company
Administrators' statement of proposals (2015-09-16) · Companies House register