TEN Joinery Ltd (06531621): administration
- Status
- Administration ended
- Administration began
- 2012-01-18
- Administrators
- Jamie Playford
- Administrators' firm
- Acuity Professional Partnership
- Incorporated
- 2008-03-12
- Location
- Norwich
- Industry
- 2030
Why it went into administration
- Creditor pressure / legal action
- Loss of a key customer, supplier or contract
- Bad debts / customer insolvency
- Rising costs / inflation
- HMRC / tax arrears
- Sustained trading losses
From the administrators' statement
Ten Joinery Ltd (“the Company’) was incorporated in March 2008 and began with a team of six people and an initial cash investment of £50,000 In its first year, it achieved turnover of £375,000 and despite cash-flow being tight and having little to no credit, the Company showed a small profit
During 2009 sales increased to £500,000 but cash-flow was continuing to be a problem so the Company sought different methods to ease the Issue, arranging an invoice factoring deal with Venture Finance Despite an increase in sales the Company made a loss of £30,000 in 2009 Further analysis of this period showed that labour costs rose unexpectedly, mainly due to salary paid personnel reducing their hours, and political divisions amongst the directors causing differences in strategic thinking
Turnover dropped during 2010 to £375,000 due to falling sales as chents became cautious of spending due to the uncertainty around the General Election and the overall economic outlook The directors agreed to seek legal/financial advice and met with an insolvency practitioner through the Company's accountants The advice received showed that the Company was not insolvent but would need to reduce running costs and increase tumover/profits as soon as possible, with a view to reviewing the financial situation carefully throughout the upcoming months Production expenditure was decreased and a concerted effort was made by the directors to generate cash in the business through increased sales, increased profit margins and lower operating costs By the third quarter of 2010 the client order book prospects had improved and production had tightened Its costs The Company faced some unexpected litigation expenditure towards the end of 2010 due to an act of theft by a shareholder/employee which resulted in a defended court and employment tribunal case There was also approx £20,000 of bad debt as a result of two customers entering Insolvency procedures
Administrators' statement of proposals (2012-02-09) · Companies House register