North Dean Engineering Ltd (08181573): administration
- Status
- Administration ended
- Administration began
- 2017-10-19
- Administrators
- Patrick Alexander Lannagan, Conrad Alexander Pearson
- Administrators' firm
- Mazars
- Incorporated
- 2012-08-16
- Location
- Manchester
- Industry
- 25990 Manufacture of other fabricated metal products n.e.c.
Why it went into administration
- Creditor pressure / legal action
- Competition / price pressure
- Parent or group failure
From the administrators' statement
The Company was incorporated 16 August 2012 and the Company’s trading comprised of the manufacture of fabricated metal products along with the operation and repair of quarry equipment and plant.
Initial funding was obtained via Reward Commercial Finance LLP and later Reward Invoice Finance Limited (collectively referred to as “Reward”) who took a debenture granting them a fixed and floating charge over the Company’s assets by was of a security. Reward also have a chattels mortgage giving them a specific fixed charge over certain assets of the Company.
The Company accounts show a profit for the last two years of around £74k in 2015, £16.5k in 2016 and the draft accounts to 30 April 2017 also showed a profit of around £24k. Despite the apparently favorable financial position, the Company began to experience issues with cash flow. Over the years the Company had secured profitable, ongoing contracts however, the Company began to shift focus onto larger (and more bespoke) engineering work alongside its main business. Although these contracts were expected to lead to higher profits, the Company became overstretched due to the increased payment terms imposed by the contracts.
Administrators' statement of proposals (2017-12-13) · Companies House register