Kinet-X Structures Limited (06483398): administration
- Status
- Administration ended
- Administration began
- 2013-09-25
- Administrators
- Simon Geoffrey Paterson, David Ronald Elliott
- Administrators' firm
- Begbies Traynor
- Formerly
- Show Time International (UK) Ltd
- Incorporated
- 2008-01-24
- Location
- Chatham Maritime
- Industry
- 32990 Other manufacturing n.e.c.
Why it went into administration
- Loss of a key customer, supplier or contract
From the administrators' statement
The Directors advise that the Company was originally incorporated under the name of Show Time International UK Limited (CRN 06483398) on 24 January 2008 as the corporate vehicle for the launch of the Element 1 staging system in the UK with one of the founders of the system The Company started marketing the modular steelwork systems that had been designed under the Kinet-X name for making temporary structural display stands and buildings, and secured an early contract with BAE Systems which they were able to use to demonstrate the potential of the product and then obtain further contracts
We understand that the Company was awarded the Exhibition News Award as the most innovative product of 2009 The Directors have stated that following the award exposure and the tnitial success, the orginal designer decided to leave the Company and setup a competing business This impacted upon revenue as some contracts were lost, and it also created uncertainty regarding the Company’s rights over the system design During the period prior to the staff member leaving, the Company had redesigned and developed the product into Element 2 and had changed the company name to Kinet-X Structures Ltd The Directors advise that they sought legal advice on protection of the brand and trademarks from specialists and were advised that the orginal designer of Element 1 had no rights over any Element 2 designs as these were developed in-house by Kinet-X Structures
The Company focussed trading around securing a small number of large contracts, and cash flow was substantially impacted when a debtor based in Dubai owing £155,000 failed to pay Recovery attempts have to date not been successful and this severe restriction on working capital resulted in financial difficulties, with staff continuing to work on securing new contracts for approaching 12 months without having been paid their salary Following the failure of the Company to secure two major contracts, and with progress on the collection of the Dubai debtor having stalled, the directors sought advice from Carter Clarke Financial Recovery, a firm of Insolvency Practitioners. Initial steps were taken by the Directors to place the Company into Creditors’ Voluntary Liquidation, and further discussions were then held with FSE Loan Management Limited, the qualifying floating charge holder (“FSE”) Following these discussions, FSE took steps to place the Company into Administration, and a Notice of Appointment of an Administrator by the holder of Qualifying Floating Charge was filed in court on 25 September 2013 at which time the Company entered into Administration with David Elliott and Simon …
Administrators' statement of proposals (2013-11-20) · Companies House register