Direct Nursing Associates Limited (04283904): administration
- Status
- Administration ended
- Administration began
- 2011-10-06
- Administrators
- John Christopher Sallabank, Paul Robert Boyle
- Administrators' firm
- Harrisons Business Recovery and Insolvency
- Incorporated
- 2001-09-07
- Location
- Reading
- Industry
- 8514
Why it went into administration
- HMRC / tax arrears
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Loss of a key customer, supplier or contract
- Bad debts / customer insolvency
- Competition / price pressure
From the administrators' statement
The Company was incorporated on 7 September 2001 and traded as a nursing agency supplying temporary healthcare staff to the NHS and private hospitals with Keith Keaveny (KK’) appointed sole director from January 2006. Initial trading was funded by way of an overdraft facility from Barclays Bank Plc capped at £10,000 and an invoice discounting agreement with SMEIF
In December 2005, the Company was acquired by Care Providers Group Limited as a going concern as an effective add on to an existing nursing agency, in order that economies of scale could be achieved. The purchase was made on the understanding that it would achieve minimum annual net profits of £100,000.
We have been advised by KK that although new clients and tenders were won, it was to become apparent that this level of turnover could not be achieved and would result in cashflow problems. A reduction of overheads occurred which proved insufficient and accordingly in 2008 the management team’s employment contracts were terminated.
Administrators' statement of proposals (2011-12-07) · Companies House register