Stone Edge Midlands Limited (06016200): administration
- Status
- Administration ended
- Administration began
- 2020-01-06
- Administrators' firm
- Begbies Traynor
- Formerly
- Stone Edge Limited
- Incorporated
- 2006-12-01
- Location
- Preston
- Industry
- 71129 Other engineering activities
Why it went into administration
- HMRC / tax arrears
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Sustained trading losses
From the administrators' statement
Stone Edge Limited was incorporated on 1 December 2006 by the director, Richard Denney for the purpose of operating a historical building restoration Company. Initially it operated throughout the country however from 2014 the group structure of the Company was amended and a new entity operating in the North was incorporated. Thereafter the Company (which amended its name to Stone Edge Midlands Limited on 7 November 2019) operated principally in the midlands and southern areas Both companies were subsidiaries of RACAD Limited. Kerth Learoyd was also appointed as director in 2015 and operated within the midlands from the Tamworth site.
The Company traded profitably for a number of years and operated successfully. Turnover of £6.6million was recorded in the year ending June 2018 and profit reserves exceeded £300k. However, during 2019 the Company began to experience financial difficulties following delays and determinations on two large contracts. Significant losses were incurred which severely impacted upon the cashflow and balance sheet of the Company. Due to the specialist nature of the work carried out and the high skill level of the employee base the Company had a high level of fixed overheads and was unable to reduce these to address the financial difficulties
Consequently, arrears began to accrue with a number of the Company’s suppliers and HMRC who were under a time to pay arrangement agreed in the autumn of 2019. However, as further payments were missed notice was received from HMRC in November 2019 threatening winding up action.
Administrators' statement of proposals (2020-02-28) · Companies House register