Hembuild Limited (07137003): administration
- Status
- Administration ended
- Administration began
- 2015-11-03
- Administrators
- Sandra Lillian Mundy, Alan Peter Whalley
- Administrators' firm
- FRP Advisory
- Formerly
- Hemcrete Projects Limited; Hemp Construction Ltd
- Incorporated
- 2010-01-26
- Location
- Oxford
- Industry
- 41100 Development of building projects
Why it went into administration
- Credit insurance / supplier credit withdrawn
- Parent or group failure
- Competition / price pressure
From the administrators' statement
21 The Company was incorporated on 26 January 2010 and its core services were the construction of hemp based timber frame products for self build projects and acting as a contractor/sub-contractor on larger scale building contracts The Company has been funded by its parent company, Hembuild Group Limited ("Group") (which 1s in administration), which in turn was funded by Neptune-Calculus Income and Growth VCT PLC and Hazel Renewable Energy VCT PLC (both holding security) The Company provided cross-guarantees to each of these funders
22 The activities of the Company, until the summer of 2015, had been complimented by two of Group's products the manufacture and sale of render and mortar products and an external property render service Group decided to withdraw the external render service as It was an unprofitable and it also concluded a sale of the manufacturing service to a company, associated by common shareholders, for £1 6m
23 The funds realised from the sale were largely used to settle outstanding loans and interest and to pay off an invoice discounting facility The remainder of the funds of c£500,000 were expected to be made available to the Company in April 2015 to fund ongoing trading, however, these were not received until June 2015 The delay caused the Company and Group problems with suppliers that resulted in the withdrawal of credit facilities and a requirement to order on pro-forma invoice basis This had an impact for the Company's trading activities and projects were delivered late incurring large penalties These factors had a serious impact on the Company's cash flow
Administrators' statement of proposals (2016-01-15) · Companies House register