Aluminium Structures (Scaffolding Services) Limited (05733940): administration
- Status
- Administration ended
- Administration began
- 2017-04-20
- Administrators
- Stephen Leonard Conn
- Administrators' firm
- CG&Co
- Formerly
- Sigma Access Systems Limited
- Incorporated
- 2006-03-07
- Location
- Manchester
- Industry
- 25110 Manufacture of metal structures and parts of structures
Why it went into administration
- Creditor pressure / legal action
From the administrators' statement
The principal activity of the Company was the specialist bespoke installation of access systems and scaffolding to the Construction industry. The Company traded from Unit 5a, Aviation Park, Flint Road, Saltney Ferry, Chester, CH4 0GZ and employed experienced scaffolders with the ability to erect and dismantle complex access systems. The Company traded successfully for a number of years but had grown reliant upon the construction side of the business. Trading with Aluminium Structures (Work Platforms) Ltd (a company connected by virtue of common directors and shareholders) meant that a suite of services could be provided directly. Offering bespoke access systerns and the specialised labour to erect and thereafter dismantle the systems on completion. Aluminium Structures (Scaffolding Services) Ltd ("the Company”) would sub contract work to Aluminium Structures (Work Platforms) Ltd ("Work Platforms") and vice versa.
The construction sector had declined in recent years and working relationships with main contractors became increasingly difficult. One large contract had been subcontracted to the Company by Work Platforms. The project fell behind and the main contractor removed Scaffolding Services from site. As the contract was initially with Work Platforms the default and therefore the liability lay with it as well as Scaffolding Services. The sole assets of the Company remained on site under a threat of non-specialist removal and a winding up petition was threatened. Preserving the assets and extracting the maximum value from the already erected bespoke access systems that now required specialist dismantling was difficult. It could not be achieved without a protective moratorium.
During discussions with the directors, the primary asset, being the stock of access systems specifically fabricated for the main contractor was identified as being problematic. The materials to fabricate the access system had been purchased using inter-company transactions together with third party materials, some of which had not been paid for. Identifying raw materials within the fabricated and erected scaffold was impossible. Agents advised the directors that it would be difficult to accurately ‘predict what realisation could be achieved on the open market, nor could they accurately attribute a value to each company. Consequently, the agents advised that any realisation should be split between the two companies.
Administrators' statement of proposals (2017-05-16) · Companies House register