# Drum Disposal and Recycling Services Limited (04313687)

> Why UK company 04313687 went into administration, from the administrators' statement filed at Companies House, by companydig. Interactive version: https://companydig.co.uk/company/04313687

- **Status:** Administration ended
- **Administration began:** 2011-10-05
- **Administrators:** John Christopher Sallabank, Paul Robert Boyle
- **Administrators' firm:** Harrisons Business Recovery and Insolvency
- **Incorporated:** 2001-10-30
- **Location:** Reading
- **Industry:** 9305

## Why it went into administration

- Rising costs / inflation
- Competition / price pressure
- Weather / natural events

## From the administrators' statement

Drum Disposal and Recycling Services Limited (the Company’) was incorporated on 30 October 2001 at which time Michael Broad (MB) and Stephen Broad (‘SB’) were appointed directors and carried on business dealing with the disposal and recycling of storage drums. The business previously traded as a partnership commencing in 1999, but was incorporated following receipt of professional advice

The Company traded from premises in Rainham and initial trading proved profitable until 2003 when the premises suffered a fire An insurance claim was submitted to recover the losses incurred, but was initially rejected. This decision was appealed and resulted in a prolonged 3 year legal case to recover the sums due from the insurance clam We have been advised that this affected the trading and profitability. Settlement was finally reached in 2006 for approximately £150,000 In addition funding of approximately £125,000 was committed for the purpose of diversifying into metal and plastic recycling which, we understand, proved successful.

At this time the Company had also purchased a firm tn Shipley with the intention of benefiting from work available in the North, It was believed that certain costs could be shared between the two sites but this did not prove possible, We understand that the Company experienced a substantial increase in costs over a 2 year period. This was primarily attributed to the fact that originally 90% of the materials needed by the Shipley branch were locally sourced. However, as a result of the economic downturn, local suppliers were diminishing and these had to be sourced from the Company's site in Rainham. This led to increased transport costs from £2K to £14k per month

Statement of proposals: https://find-and-update.company-information.service.gov.uk/company/04313687/filing-history/MzA0ODc3MzgzM2FkaXF6a2N4/document?format=pdf&download=0
Companies House register: https://find-and-update.company-information.service.gov.uk/company/04313687

Contains public sector information from Companies House, licensed under the Open Government Licence v3.0.