Elite Control Solutions Limited (05150608): administration
- Status
- Administration ended
- Administration began
- 2011-07-15
- Administrators' firm
- FRP Advisory
- Incorporated
- 2004-06-10
- Location
- London
- Industry
- 7487
Why it went into administration
- HMRC / tax arrears
- Funding withdrawn / unable to refinance
- Competition / price pressure
- Creditor pressure / legal action
- Loss of a key customer, supplier or contract
- Parent or group failure
From the administrators' statement
In the months prior to the appointment the Directors of HSEG had begun discussions with LBG with a view to Increasing bank facilities to finance working capital. The Group had grown quickly and the need for additional working capital had become a significant concern, the HSEG Directors had forecast that Group turnover would reach approximately £60m during 2011 from approximately £45m
In furtherance of the Group’s request for additional funding, negotiations commenced regarding the level and type of facilities the Group would require It was considered by the Bank that the most appropriate form of finance would be confidential invoice discounting To support the Group whilst negotiations progressed with Lloyds TSB Commercial Finance Limited, the Bank allowed the Group to temporarily exceed its overdraft facility of £1 95m At the beginning of July 2011 the Group was referred to the Bank's Business Support Unit because of increasing creditor pressure that was giving rise to a steadily increasing overdrawn position, to around £3 5m
Shortly after being referred to Business Support a meeting was convened on 5 July 2011 between the Bank and the Directors of HSEG and certain Directors of the Group’s subsidiaries to discuss the Group’s financial position, At this meeting the Bank informed the Directors that in order to increase lending further, whether through further increases in the overdraft or by an invoice discounting facility, an independent business review would be required, amongst other things, to confirm the level of the funding required, the period over which it would be needed and the current financial position of the Group
Administrators' statement of proposals (2011-09-20) · Companies House register