GSL Recoveries 2015 Limited (09147447): administration
- Status
- Administration ended
- Administration began
- 2015-03-27
- Formerly
- Giffen Switchgear Limited
- Incorporated
- 2014-07-25
- Location
- London
- Industry
- 64209 Activities of other holding companies n.e.c.
Why it went into administration
- Weather / natural events
- Cash flow / liquidity pressure
- Sustained trading losses
From the administrators' statement
31 Following the acquisition of the business from GGL the Company’‘s turnover fell significantly which was due In part to the loss of two key members of the sales team However, following the initral few months new orders were secured, and It appears that turnover was beginning to recover to pre-acquisition levels of approximately £100,000 per month on average It appears that the initial low level of turnover, delays with a major contract which remained unpaid at the date of our appointment, combined with a high initial cost structure, led to cash flow difficulties from the outset This in turn, resulted in orders being delayed due to procurement issues and the Company being placed on stop or proforma with key suppliers The Company has been funded in part by working capital loans from the Director and his associated compantes to a total of approximately £107,000 per the Company’s accounting information Please note, at the time of drafting this amount ts still subject to reconciliation and may be affected by the purported debt assignment agreement
32 It is presently not possible to comment with any degree of certainty on what the actual trading Position of the Company was as audited accounts had not been produced, as the Company had not traded for long enough, and would most likely have been below the audit threshold in any case Further, the accounting records contain a substantial suspense account and appear to be missing postings for the majority of wages and salaries However, it can be seen that turnover from 1 September 2014 to 6 March 2015 was recorded at £527,105 and direct cost of sales was recorded at £197,994 The current financial position of the Company ts dealt with later in this report
33 It is understood that as a result of cash flow pressure, the Director approached Yerrill Murphy, Insolvency & Business Recovery Professionals on or around 15 March 2015 and sought advice as to the financial position of the Company and options available On receiving advice, the Director acknowledged that the Company was unlikely to avoid a formal insolvency process and accordingly a board meeting was held on Tuesday, 17 March 2015 whereby it was resolved that the Company was insolvent and that tt should be placed into Administration forthwith A Notice of Intention to Appoint an Administrator (“Nol”) was filed in the High Court of Justice on Tuesday, 17 March 2015 at 12 08pm In accordance with section 26 of Schedule B1 of the Insolvency Act 1986 (the “Act”), written notice was served on GGL who are a prescribed person under the same section of the Act and therefore they were entitled to appoint an Administrator under paragraph 14 per their qualifying floating charge It is understood the Nol was received by GGL on Monday, 23 March 2015
Administrators' statement of proposals (2015-05-29) · Companies House register