Outsourcery PLC (08368966): administration
- Status
- Administration ended
- Administration began
- 2016-06-16
- Administrators
- Simon J Edel, Samuel James Woodward
- Administrators' firm
- EY
- Formerly
- Outsourcery Limited; Outsourcery Holdings Limited
- Incorporated
- 2013-01-21
- Location
- Manchester
- Industry
- 63110 Data processing, hosting and related activities
Why it went into administration
- Cash flow / liquidity pressure
- Sustained trading losses
- Property / lease costs
- Competition / price pressure
From the administrators' statement
As explained previously, the Companies had historically been loss making due to their investment in IT infrastructure and cost base in anticipation of strong revenue growth from its O-Cloud platform However, the pace of revenue growth was below expectations and resulted In the losses continuing to accumulate, largely in Hosting as the main trading entity
During 2016, the continued losses resulted in cash flow pressure The Board sought to raise additional funding from a variety of sources, including considering issuing convertible bonds and an equity rights issue Concurrently, the Group sought a sale of the Core Platform and Its freehold property in Leicester and sought the return of the rent deposit from the Landlord of the London leasehold premises
EY were introduced to the Companies by Vodafone on 12 April 2016, during a two week
Administrators' statement of proposals (2016-07-25) · Companies House register