# Lamp Group Limited (04842581)

> Why UK company 04842581 went into administration, from the administrators' statement filed at Companies House, by companydig. Interactive version: https://companydig.co.uk/company/04842581

- **Status:** Administration ended
- **Administration began:** 2019-05-16
- **Administrators:** Kirstie Jane Provan, Mark Robert Fry
- **Administrators' firm:** Begbies Traynor
- **Formerly:** M M & S (3021) Limited
- **Incorporated:** 2003-07-23
- **Location:** London
- **Industry:** 65120 Non-life insurance

## Why it went into administration

- Funding withdrawn / unable to refinance
- Creditor pressure / legal action
- Cash flow / liquidity pressure

## From the administrators' statement

The Group was formed principally to underwrite and market After the Event Legal Expense Insurance (‘ATE’). The purpose of ATE insurance is to cover a claimant if they are obliged to pay their opponent's costs and their solicitor's disbursements incurred as a result of them bringing a legal action. The Company also underwrote certain other policies such as Miscellaneous Financial Loss, and Intemational Healthcare Insurance.

The Group was successful in the early part of its trading but was materially adversely impacted by changes to the law introduced by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (“LASPO”), which came into effect in April 2013. The effect of LASPO was to remove (in the majority of cases) the right of claimants to recover ATE premiums from losing defendants. This meant that successful defendants could not recover their legal costs from the claimant, largely taking away the need for ATE insurance. This had several effects on the industry, which saw a new range of products covering related aspects to certain claims being marketed to claimants at a lower premium. A claimant would ultimately be liable to cover the cost of the premium from the damages received.

The impact of LASPO provoked a major strategic change in respect of the business of the Group. The Group was obliged to change its product offering to clinical negligence cases which, by their nature, take significantly longer fo pursue and settle. The premium is also only payable by the insured party if, and once, the matter is settled. This resulted in an adverse impact on the cash flow of the Group, and increased funding requirements for working capital.

Statement of proposals: https://find-and-update.company-information.service.gov.uk/company/04842581/filing-history/MzI0MDU1MTg2NWFkaXF6a2N4/document?format=pdf&download=0
Companies House register: https://find-and-update.company-information.service.gov.uk/company/04842581

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