Capital Pallet Solutions Ltd (04813339): administration
- Status
- Administration ended
- Administration began
- 2017-02-27
- Administrators
- Andrew Graham Mackenzie, Julian Pitts
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2003-06-27
- Location
- Hull
- Industry
- 16290 Manufacture of other products of wood; manufacture of articles of cork, straw and plaiting materials
Why it went into administration
- Loss of a key customer, supplier or contract
- Property / lease costs
- Weather / natural events
From the administrators' statement
The Company began to expenence financial difficulttes as a consequence of the loss of tts largest customer worth approximately £500 000 of turnover in May 2016 The Company's draft accounts as at 31 December 2016 reported a net loss of £465 124 in comparison to the previous year which reported a net profit of £43 210
Despite the loss of the largest customer the Company was still obtaining good margins on its sales and had a strong customer base with 6 customers who were under formal contract representing approximately £1millton turnover However the viability of the Company’s future became questionable due to the size of the overhead base the premises rent alone being £50k per annum along with other related costs such as rates insurance utilities etc meaning the Company was running at a loss
In January 2017 the Company was liaising with a local customer Watson Pallets Limited ( Watsons ) about a possible sale of the business However the discovery of the loss of the major customer and resultant losses stalled this
Administrators' statement of proposals (2017-03-15) · Companies House register