Associated Steel Works Ltd (08324163): administration
- Status
- Administration ended
- Administration began
- 2018-07-31
- Formerly
- Associated Steel Fabrication Limited
- Incorporated
- 2012-12-10
- Location
- Bristol
- Industry
- 43999 Other specialised construction activities n.e.c.
Why it went into administration
- Cash flow / liquidity pressure
- HMRC / tax arrears
- Bad debts / customer insolvency
From the administrators' statement
The business was established in December 2012 and the principal activity of the Company was the provision of specialist steel work services to a range of customers. The business grew rapidly since its inception to a peak in 2017, where turnover reached c.£1.7m. As a result of this expansion and the acceptance of ever larger construction projects the business grew beyond the ability of the management to control. This, coupled with two significant bad debts undermined the ability of the business to continue to trade and ‘eft with an unsustainable debt burden.
On 17 July 2018 South West and Wales Business Recovery was introduced to the Company through the Company's accountants, Curtis Bowden and Thomas Limited, to provide initial advice on its financial position. The Company was insolvent as it was unable to meet its liabilities as they fell due and was facing pressure from creditors, in particular HM Revenue & Customs, with threats of winding up proceedings. The company has, historically, been propped up by significant cash investments from its directors who are currently owed in the region of £782,000.
Jon Law of South West and Wales Business Recovery met with the Company's director Duncan Beaumont on 19 July 2018 to discuss the Company's financial position. it was identified early on that debt collection and achieving value in respect of ongoing work in progress was likely to be problematic in the event of a cessation of trading with no onward sale of business due to the contractual nature of the services provided. The Company also had three live quotations for projects with a value of around £167,000 which would be incapable of being fulfilled in the event that the Company was wound up and/or ceased to trade.
Administrators' statement of proposals (2018-08-30) · Companies House register