Sourcebuild Ltd (06706502): administration
- Status
- Administration ended
- Administration began
- 2017-08-07
- Administrators' firm
- Begbies Traynor
- Formerly
- RKE Building Solutions Ltd
- Incorporated
- 2008-09-24
- Location
- Manchester
- Industry
- 46130 Agents involved in the sale of timber and building materials
Why it went into administration
- Bad debts / customer insolvency
- Cash flow / liquidity pressure
- Creditor pressure / legal action
From the administrators' statement
The Company was originally incorporated as RKE Building Solutions Ltd on 24 September 2008 and subsequently changed its name to Sourcebuild Ltd on 17 November 2014.
The Company acted as a procurement vehicle, sourcing and re-selling building materials throughout the United Kingdom. The Company originally had only one employee, Rob Elliott the director who operated from his home address in Rochdale. By March 2017, the Company had twelve employees and had moved to rented premises at Globe Park, Rochdale.
Despite always experiencing some bad debts, the Company traded profitably. During the financial year ended 30 September 2016 there was a significant increase in bad debts and a bad debt provision of £204,000 had to be made Despite the large bad debt provision the Company had positive net assets at its last financial year-end, 30 September 2016. In mid-July 2017 it emerged that the Company's largest debtor had received a winding-up petition and was about to cease trading. The outstanding debt owed to the Company was £181,000 This had an impact on the Company's cashflow and as such the Company was unable to pay its debts as and when they fell due The Directors took professional advice and the advice culminated in that the Company was insolvent and unable to continue to trade. The Company ceased to trade on 21 July 2017.
Administrators' statement of proposals (2017-10-03) · Companies House register