Heron Steel Limited (07577130): administration
- Status
- Administration ended
- Administration began
- 2020-01-29
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2011-03-24
- Location
- Salisbury
- Industry
- 24100 Manufacture of basic iron and steel and of ferro-alloys
Why it went into administration
- Bad debts / customer insolvency
- Brexit
From the administrators' statement
The Company was incorporated on 24 March 2011 for the purposes of supplying steelworks within the architectural and structural steelwork industry. It traded from premises at 22 Woodside Industrial Park, Works Road, Letchworth, Hertfordshire, SG6 1LA but provided services throughout the London, Essex, Hertfordshire and Bedfordshire areas.
The Directors, with over thirty years’ experience in the industry, were able to use their contacts within the industry to secure contracts with major construction companies, housing associations and local authorities. Services provided by the Company were broad and included large structural and architectural packages to custom built staircases, balustrading and fencing. The initial trading period was funded by way of finance provided by HSBC Bank PLC (“HSBC”) who were granted a fixed and floating charge over the Company's assets in July 2012. The Company began to grow quickly, benefiting from the wide range of services it provided, and it soon outgrew its trading premises in Letchworth. Given that the Company was now generating turnover in the region of £2,200,000.00 per annum the decision was made to purchase a larger freehold unit at 10 Bowmans Trading Estate, Bessemer Drive, Stevenage, Hertfordshire, SG1 2DL (“the Premises”) in February 2017. The purchase was funded by HSBC who were provided with further security against the Company’s assets.
As the Company continued to grow, the size of the contracts increased which led to a number of complexities on site that the Company had so far not had to allow for. As a result, and also for reasons outside of the Company's control, site delays and project progression issues began to occur which affected the Company’s cashflow.
Administrators' statement of proposals (2020-04-08) · Companies House register