Equip Management Solutions Limited (06609449): administration
- Status
- Administration ended
- Administration began
- 2015-09-16
- Administrators' firm
- KRE Corporate Recovery
- Incorporated
- 2008-06-03
- Location
- 1-7 King Street
- Industry
- 70229 Management consultancy activities other than financial management
Why it went into administration
- HMRC / tax arrears
- Cash flow / liquidity pressure
- Loss of a key customer, supplier or contract
- Bad debts / customer insolvency
From the administrators' statement
The Company was incorporated in March 2010 and acts as an employment agency, employing circa 35 employees Typically, the end clients are large blue chip companies who have sourced their requirements through the main national emplayment agencies, and the Company provides the employees The Company traded from a leasehold premises on an informal basis in the Guildford, Surrey area and is run by the sole director and shareholder, Phillip James Galbraith (‘PJG')
The Company makes significant employee benefit trust (‘EBT’) contributions each year to an umbrella remuneration trust, having made £1,069,460 in the year ended 31 July 2014 The Company has a connected company Equip Recruitment Limited ("ERL") which also provides recruitment services at which until recently had been funded by the Company In total ERL owes the Company some £140,000 and Is currently unable to repay this This has resulted in the Company having cashflow difficulties and ts unable to meet its VAT arrears to HMRC for some £440,000 On 2 July 2015 the Company received a letter from HMRC warning that if not paid in full within 7 days, then winding up proceedings would be commenced Upon receiving this letter the director immediately took advice from the Company's accountants Wise & Co, who referred him to KRE Corporate Recovery LLP (“KRE”)
Following an initial meeting and after reviewing the options available to the Company, the director decided to propose a Company Voluntary Arrangement (‘CVA’) to Is creditors, estimating a potential return of 71p in the £ However the director could not continue to employ the employees with no certainty of being able to pay them as there was a significant risk that HMRC, the largest creditor of the company, would reject the CVA proposals due to their well-publicised policy of opposing EBT schemes Accordingly on 27 July 2015 the business and assets were transferred to a newco Aston-Chester Limited (ACL') Prior to the transfer of the business and assets of the Company, management instructed Wilson Partners, an independent corporate finance firm, to value the business of the Company in an Admunistration scenario The valuation range was £96,000 to £114,000 and details of how the transfer (s being dealt with in the Administration can be found later in this report
Administrators' statement of proposals (2015-11-11) · Companies House register