R Mason Site Services Limited (08567016): administration
- Status
- Administration ended
- Administration began
- 2019-02-19
- Administrators
- Charles Howard Ranby-Gorwood
- Administrators' firm
- CRG Financial Recovery
- Incorporated
- 2013-06-12
- Location
- Grimsby
- Industry
- 42990 Construction of other civil engineering projects n.e.c.
Why it went into administration
- HMRC / tax arrears
- Bad debts / customer insolvency
- Cash flow / liquidity pressure
From the administrators' statement
The Company first experienced problems as a significant bad debt arose in 2016, when some £200,000 was not received from a customer that entered formal insolvency. This was later compounded when a VAT payment was provided to a firm of accountants for onward payment to HMRC. As this firm of accountants also entered formal Insolvency, the funds were not recovered.
During November 2018 the Company had sought the assistance of Ultimate Finance Limited (“Ultimate”) and been provided with an invoice finance facility. Some £65,000 was provided and this assisted with both cash flow and paying some trade suppliers. The unforeseen further issue that arose was that at least one significant customer chose to pay the Company direct rather than Ultimate. It was apparent that after the first receipt this could become a more significant issue as further balances were paid, and ultimately this did arise.
The Company had been completing a number of contracts immediately prior to the Christmas break in December 2018. After paying the wages and holiday pay, during a time period when there was much reduced activity, a cash flow deficiency, was becoming apparent.
Administrators' statement of proposals (2019-04-30) · Companies House register