Network Direct Limited (06909716): administration
- Status
- Administration ended
- Administration began
- 2020-11-23
- Administrators' firm
- Quantuma
- Formerly
- GG 124 Limited
- Incorporated
- 2009-05-19
- Location
- Southampton
- Industry
- 66290 Other activities auxiliary to insurance and pension funding
Why it went into administration
- Funding withdrawn / unable to refinance
- Regulatory change or action
- Cash flow / liquidity pressure
From the administrators' statement
The Company’s directors were referred by Dan Geddes of Blake Morgan during the latter half of August 2020 seeking advice on the options available for the Company.
By August 2020, the Company's cash-flow revealed that there would be insufficient working capital available to allow the Company to continue to trade in the medium to long term. A further and significant instalment was required to be made to the Company’s insurers in respect of the Company’s Professional Indemnity Insurance premium. In addition, the FCA had requested that the Company look to increase its capital reserves. In order to meet these liabilities and continue to trade, additional investment was required. The Company's shareholder, Harwood Group had already provided significant financial support by way of loans to the Company but it was unwilling to advance further financial support. Faced with the prospect of suffering a trading loss over the next 12 months and with no prospect of additional investment, the directors were advised that it would not be in the interests of creditors to continue trading the Company and to incur additional liabilities, as that would reduce the assets available to creditors.
The directors advised that the Company had become insolvent due to the following factors:
Administrators' statement of proposals (2021-02-18) · Companies House register