Morgard Court Ltd (08140133): administration
- Status
- Administration ended
- Administration began
- 2022-08-05
- Administrators
- Philip Joseph Dakin, Michael Lennon
- Administrators' firm
- Kroll
- Incorporated
- 2012-07-12
- Location
- London
- Industry
- 18129 Printing n.e.c.
Why it went into administration
- COVID-19
- Rising costs / inflation
- Supply chain disruption
- Funding withdrawn / unable to refinance
From the administrators' statement
The Company had historically been profitable; however, it lost a profitable account prior to COVID and struggled to replace the lost revenue with contracts of a similar level of gross margin following the easing of COVID restrictions. In early 2022, the Company’s profit margins came under further pressure from inflation, supply chain issues and labour challenges, which impacted the Company’s cashflow.
The Company developed a turnaround plan in mid-May 2022 with the focus on improving operational efficiency and reducing costs. As per the management forecasts, the Company was expected to be broadly cash neutral in the second half of 2022 but required funding in order to continue to meet its liabilities as they fell due.
Unable to obtain further funding from the Secured Creditor, the group or its shareholders, the Company decided to appoint an advisory firm to review its short-term cash flow position and commence an accelerated sale process.
Administrators' statement of proposals (2022-08-26) · Companies House register