Rock Recruitment Specialists Ltd (06450713): administration
- Status
- Administration ended
- Administration began
- 2016-06-01
- Administrators' firm
- Leonard Curtis
- Incorporated
- 2007-12-11
- Location
- Bristol
- Industry
- 78109 Other activities of employment placement agencies
Why it went into administration
- HMRC / tax arrears
- Cash flow / liquidity pressure
- Sustained trading losses
- Competition / price pressure
From the administrators' statement
The Company commenced trading in December 2007, providing temporary and permanent recruitment services, predominantly sourcing contracts from local employers The business has grown steadily over the course of trading and in 2011 expanded into new offices in Chnstchurch The business continued to grow and in March 2013 the Company opened a second office in Poole However, in order to remain competitive, the Company had to take steps to reduce margins in respect of several of its larger contracts of temporary workers, which resulted in cash flow difficultes Consequently, Creditor arrears, including amounts payable to H M_ Revenue & Customs (‘HMRC’), have accumulated
Dunng 2014, the Company expenenced a high tumover of staff leading to an increased and disproportionate amount of overheads, the Company was unable to generate suffictent tumover to service these costs particularly as the volume of business that could be undertaken was restncted by levels of cash flow The Company managed to negotiate a payment plan with HMRC tn respect of the crown arrears but the financial situation was such that this became unmanageable
In order to resolve these cash flow issues the Company took significant cost saving measures including closing the head office, relinquishing poo! cars and mobile phones, revising employee benefits and reducing marketing and advertising expenditure The Company also reviewed tts existing contracts and where possible optimised margins as well as secunng new, more profitable contracts Unfortunately Creditor arrears continued to accrue in the meantime whilst the full benefit of these measures filtered through to the Company's working capital
Administrators' statement of proposals (2016-07-01) · Companies House register