Simple Refining Ltd (09533822): administration
- Status
- Administration ended
- Administration began
- 2024-05-24
- Administrators
- Gareth Howarth
- Administrators' firm
- Path Business Recovery
- Incorporated
- 2015-04-09
- Location
- Manchester
- Industry
- 46900 Non-specialised wholesale trade
Why it went into administration
- Cash flow / liquidity pressure
From the administrators' statement
The Company first began to experience difficulties following the Russian invasion into Ukraine. The conflict saw the cost of the precious metals plummet overnight. Palladium in particular has seen significant price decreases, the metal was used by automobile manufacturers for parts in motor vehicles; however fears over its supply due to the ongoing conflict in Ukraine have meant these companies have shifted to use other metals with a stable supply. Following the downturn of the price of these metals, the Director took the decision not to reduce what he was paying dentists for their scraps, as he believed it wasn’t worth jeopardising the good relationships that had been established in the preceding years and that in his experience the market would see an upturn before too long.
However, the market did not see an upturn and experienced a further decline. At this point, the Director realised he had no choice but to reduce what he was paying for scraps, as profits had reduced significantly, and cash reserves began to dwindle. As predicted, this did result in a number of relationships coming to an end, which was costly for the Company.
Whilst the above was ongoing the Director also became aware of a member of staff acting dishonestly. He is of the belief that this individual had been collecting scraps on behalf of the Company and retaining anything of value for their own gain. The Director dismissed this employee and while he says it’s difficult to quantify the monetary impact this had on the Company, he believes it was significant.
Administrators' statement of proposals (2024-06-27) · Companies House register