Drywall Technologies Limited (04544125): administration
- Status
- Administration ended
- Administration began
- 2015-05-29
- Administrators' firm
- Evelyn Partners
- Formerly
- HLW 172 Limited
- Incorporated
- 2002-09-24
- Location
- London
- Industry
- 43390 Other building completion and finishing
Why it went into administration
- Cash flow / liquidity pressure
- Creditor pressure / legal action
From the administrators' statement
Towards the end of 2014, the Company had seen a number of jobs which were struggling to maintain profit margins. The impact was two-fold in that margins were being eroded and, as the main contractors were also suffering losses, they would hold back payment on jobs (thus starving the Company of cash) and improving their bargatning position tn settling final accounts
Consequently, the Directors decided that the Company should took to wind-down operations whilst the labour market settled, and avoid any Jobs poorly priced by main contractors.
At the time, the bulk of the Company’s live work was concentrated with one major contractor This left the cashflow of the business highly reliant on timely payments and fair valuation of the interim accounts the Company was submitting. As the job progressed, the gap between the Company’s applications and the value being certified was growing, until it reached a point, in March 2015, where the Company was experiencing monthly run-rates of costs exceeding the valuation movement by circa £300k. This was creating significant cashflow pressure on the bustness at a time when other ongoing Jobs had also failed to deliver expected returns.
Administrators' statement of proposals (2015-08-04) · Companies House register