Dribuild Limited (06551179): administration
- Status
- Administration ended
- Administration began
- 2019-10-04
- Administrators
- Neil Frank Vinnicombe, Simon Robert Haskew
- Administrators' firm
- Begbies Traynor
- Formerly
- Devonald Limited
- Incorporated
- 2008-04-01
- Location
- Bath
- Industry
- 41100 Development of building projects
Why it went into administration
- Creditor pressure / legal action
From the administrators' statement
1. A poorly advised acquisition 2. Three large projects struggling simultaneously
A turnaround plan was implemented which focused on cost reduction and more selective and local work tendering. A satellite office was closed and staff numbers were reduced. Forward orders were strong although cash management became problematic. The directors sought professional advice in February 2019 and were introduced to a corporate financier/fund raising firm based in London with a view to seeking cash
-3investment via short term and equity funding. A number of parties expressed interest in investing and after some sifting 2 parties were prepared to make offers. Following the due diligence process both funders provided a proposal to the Company, one of which was accepted and heads of terms were signed. Over the next 2 weeks it became apparent that the investor did not have the funds readily available and so the decision was made to part company. The Company had in tandem been making its own investment enquiries and attracted a high net worth individual who committed in April 2019 to make significant short and long term investment which was to be paid over a 6-8 week period due to delays and issues relating to agreement of amended banking facilities with the HSBC, this period extended and as a result so did the value of investment. Over the course of approximately 5 months some £4.4m was invested. In later September 2019 the investor indicated that they may not be able to continue any further support. Despite extensive efforts by the directors the investment was withdrawn on 26 September. This left the Company in an untenable financial position and the directors sought immediate …
Administrators' statement of proposals (2019-12-30) · Companies House register