Purogenix Limited (08194047): administration
- Status
- Administration ended
- Administration began
- 2018-06-04
- Administrators
- William James Wright, Stephen John Absolom
- Administrators' firm
- KPMG
- Incorporated
- 2012-08-29
- Location
- Reading
- Industry
- 21100 Manufacture of basic pharmaceutical products
Why it went into administration
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Regulatory change or action
- HMRC / tax arrears
- Creditor pressure / legal action
From the administrators' statement
The Company acquired the facility in Sandwich, Kent in 2014 and following receipt of the various regulatory licenses commenced trading in 2017. The management accounts prepared in late 2017 showed turnover of £6.0 million and an operating loss of £2.3 million in the business’ first year of trading.
The business faced significant liquidity challenges due to overruns in the fit out of the facility, the capital intensive nature of the business and delays in obtaining the necessary regulatory approvals to sell their product into the higher margin markets in Europe and the US. Given the liquidity position of the Company the Bank did not have the appetite to provide any further funding to the business and, as such, the director sought alternative financing arrangements.
Following an extensive refinancing / equity raising process the facility was mothballed in December 2017 whilst the Company continued to seek further funding for the business.
Administrators' statement of proposals (2018-08-13) · Companies House register