Staffpoint Employment and Recruitment Limited (06867927): administration
- Status
- Administration ended
- Administration began
- 2015-05-21
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2009-04-02
- Location
- Birmingham
- Industry
- 78200 Temporary employment agency activities
Why it went into administration
- HMRC / tax arrears
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Bad debts / customer insolvency
- Sustained trading losses
From the administrators' statement
The Company, which provided permanent and temporary staffing solutions to public and private sector clients, had traded reasonably well since its incorporation in 2009 However, the draft accounts for the year ending 30 June 2014 showed losses in the region of £110,000 Management information for the six month period ending 31 December 2014 showed a small profit of ctrca £6,000 had been achieved but this was inadequate to deal with the prior period losses The poor performance tn the year ended 30 June 2014 led to cash constraints and legacy liabilities, particularly in respect of HM Revenue & Customs (HMRC)
The director attributed the poorer trading performance in this period to a combination of factors including (1) new legislation relating to self employed status, (2) the growing use of zero hours contracts by some of its clients, (3) growing pressure to reduce margins for placing staff within private and public sector customers, (4) costs and challenges associated to opening and running a London office and (5) bad debts because of customers facing insolvency proceedings
The director was concerned that the current trading performance would be inadequate to generate sufficient cash quickly enough to discharge all liabilities as and when they fell due He initially attempted to negotiate an informal time to pay arrangement with HMRC, the principal creditor An informal arrangement could not be agreed and the Director subsequently sought advice regarding the preparation of a formal time to pay arrangement through a Company Voluntary Arrangement ("CVA") A CVA proposal was prepared and was accepted by some creditors but importantly HM Revenue & Customs (HMRC) were unwilling to accept the proposal and the proposed CVA was rejected
Administrators' statement of proposals (2015-07-21) · Companies House register