Cross Services Engineering Limited (05624965): administration
- Status
- Administration ended
- Administration began
- 2012-06-11
- Administrators' firm
- Mazars
- Formerly
- Cross Services (2006) Limited
- Incorporated
- 2005-11-16
- Location
- Nottingham
- Industry
- 43210 Electrical installation
Why it went into administration
- Funding withdrawn / unable to refinance
- Supply chain disruption
- Loss of a key customer, supplier or contract
- Loss-making contracts / project overruns
- Property / lease costs
- Competition / price pressure
From the administrators' statement
As a result of legal disputes and a number of lost contracts, the company entered 2012 requiring the continuing support of the shareholders, funders and supply chain to ensure the viability of the business going forward
In late 2011, the company’s key client, AstraZeneca (‘AZ’), which provided 40% of the company’s turnover, halted all capital projects until 2012 This restricted the company’s cash flow and profitability Coupled with a pre-dommnantly long-serving workforce and a competitive commercial arena the business was unable to adapt to its rapidly changing environment and address its overhead base
The directors sought assistance from its ultimate holding company, Boulting, but Boulting was not prepared to inject the funds to maintain the operation of the company Given the forecast worsening position, the directors sought advice on the options available to the company
Administrators' statement of proposals (2012-08-06) · Companies House register