Intelligent Disabled Solutions Limited (06585199): administration
- Status
- Administration ended
- Administration began
- 2017-03-13
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2008-05-06
- Location
- Hull
- Industry
- 43220 Plumbing, heat and air-conditioning installation
Why it went into administration
- HMRC / tax arrears
- Creditor pressure / legal action
- Cash flow / liquidity pressure
- Loss of a key customer, supplier or contract
- Bad debts / customer insolvency
- Sustained trading losses
- Management failings / irregularities
- Competition / price pressure
From the administrators' statement
Intelligent Disabled Solutions was incorporated in 2008 and began trading from premises in Tamworth, carrying out disabled access works on commercial and residential construction and maintenance projects within the midlands area. The Company traded successfully and profitably for many years and has continued to be owned and operated by the same directors since incorporation. in late 2016, a large contract was undertaken for a major customer at a significant loss to the Company. This contract was larger than previous contracts compieted by the Company and it became apparent that the profitability of the project was overstated and in fact the contract was going to cost the Company a significant sum to ensure that it was completed. Upon identification of the extent of the contract loss which was estimated in the region of £500k. The Company sought to trade through the difficult times and rely upon senior management and the directors’ expertise within the sector to trade through this difficult period and on going cash flow issues.
In December 2016 at the same time as the extent of the above contract loss became apparent, there was a request from HMRC for a security bond in the sum of £69k to be provided by the Company following the Time To Pay (“TTP”) arrangement that the Company had defaulted on with HM Revenue & Customs. Discussions were ongoing with HMRC at a time when the Company's cash flow was already strained and it became clear in 2017 that there was limited scope to provide HMRC with the bond that they required and as a result a further TTP arrangement with HMRC was reached in early 2017, but immediately breached.
The Company also had approximately £600k of aged debtors on their ledger which distorted the Company's financial position. It is uncertain whether these debtors were bad debts and continued to be included within the Company's financial statements however these aged debts had put a further strain on the Company's cash flow.
Administrators' statement of proposals (2017-05-17) · Companies House register