Dafw Realisations Holdings Limited (06512482): administration
- Status
- Administration ended
- Administration began
- 2019-10-22
- Administrators
- Mark Malone, Lloyd Christopher Biscoe
- Administrators' firm
- Begbies Traynor
- Formerly
- Building Services Design (Holdings) Limited
- Incorporated
- 2008-02-25
- Location
- Birmingham
- Industry
- 82990 Other business support service activities n.e.c.
Why it went into administration
- HMRC / tax arrears
- Cash flow / liquidity pressure
- Sustained trading losses
From the administrators' statement
The Company is the non trading parent company to DAFW Realisations Cambridge Limited (formerly Building Services Design Holdings Limited) (“Cambridge”) which also entered into administration on 22 October 2019. The Company holds an investment property at Quavers, High Street, Thornham, Hunstanton, PE36 6LY (“Quavers”) which is subject to charges in favour of Yorkshire Building Society (“YBS”) and Inksmoor Capital Limited (‘Inksmoor’). The Company has also given debentures to HSBC Bank Plc (“HSBC”) and Inksmoor. Detail of the security is provided at Section 7.
Cambridge was a well established large practice of consulting engineers (M&E consultants). More recently, there were trading losses in Cambridge in the region of £400k. These losses resulted in growing cash pressures and a build up of legacy debt including sums due to HM Revenue & Customs (“HMRC”) in relation to VAT and PAYE. The Company was part of a VAT group with Cambridge. Attempts to agree a time to pay arrangement with HMRC were eventually rejected. HMRC then proceeded to file a petition for the Compulsory winding up of the Company and Cambridge on 5 September 2019. The hearing date set for 23 October 2019.
The Directors engaged advisors because of the financial position and an accelerated marketing process of Cambridge was commenced. After a period of marketing an offer to buy the business and assets of Cambridge was received and solicitors were instructed. During this period a dialogue was ongoing with HSBC and tnksmoor who both held floating charges over the Company and Cambridge. The Directors then decided to formally invite HSBC to appoint administrators over the Company and Cambridge.
Administrators' statement of proposals (2019-12-30) · Companies House register