Harper_Downie Limited (04639659): administration
- Status
- Administration ended
- Administration began
- 2011-05-16
- Formerly
- Finlay Harper Limited
- Incorporated
- 2003-01-17
- Location
- London
- Industry
- 7420
Why it went into administration
- Bad debts / customer insolvency
- Funding withdrawn / unable to refinance
From the administrators' statement
Harper Downe was incorporated as a firm of architects and designers on 17 January 2003 as Finlay Harper Lumited The name was changed to Harper Downie on 26 January 2006 It operates from offices at the Gate House, No 1 St John’s Square, Clerkenwell, London EC1M 4DH
The company progressed steadily, acquiring a broad range of clients in the domestic and commercial sectors By 2007, revenue had grown to £2 5M with about 15% pre tax profit The company was working in many sectors in the United Kingdom and the Gulf However, the Northem Rock and sub-prime mortgage concerns started to affect the markets in the autumn of 2007 which had an immediate affect on the clients, who either did not feel confident enough to embark on work or to draw down funds from their banks
Accordingly, revenues plummeted and the company was faced with many bad debts Year end 2009 produced a revenue of £1 2m but with a loss of £267,972 before tax This loss was due to three factors, the bank (AIB) cut the overdraft factlities frorn £200,000 to £50,000 which had to be repaid in 9 months, projects were put on hold with no notice, forcing the company to make staff redundant, and even if this was enacted immediately there was the cost of the run off period, and lastly the company was hit by many clients going under or failing to meet their obligations to HD against fees earned and invoiced Engaging lawyers to recover debts was impractical in many cases as often a development is a SPV with no assets However, where possible we did so, spending money with lawyers in the process Bad debt accounted for more than £300,000 tn the year ending 30 June 2009 alone
Administrators' statement of proposals (2011-07-14) · Companies House register