LEX Group Limited (09710216): administration
- Status
- Administration ended
- Administration began
- 2017-01-05
- Administrators
- Raymond Stuart Claughton
- Administrators' firm
- Rushtons Insolvency
- Incorporated
- 2015-07-30
- Location
- Shipley
- Industry
- 81210 General cleaning of buildings
Why it went into administration
- Cash flow / liquidity pressure
- Loss of a key customer, supplier or contract
From the administrators' statement
The Company was incorporated on 30" July 2015, however remained dormant until January 2017 when 1t commenced trading as a recruitment agency supplying temporary cleaners to constructions sites. Initially under the Directorship of Mr. Dinesh Bhogal who also held the one issued share before transferring both the Directorship and his one share to his wife, Mrs. Gursharon K. Bhogal, immediately prior to the Company commencing to trade in January 2016.
The Company’s business involved the supply of a workforce, on a labour/temp only basis to organisations, payment was made by the client upon the production of a timesheet and at a rate agreed prior to the commencement of the contract between the Lex Group and the client. This system worked well until the delay between the client providing the money on the contract and the expectancy of the workforce to be paid provided a cash flow problem for Lex Group
In order to resolve this, Lex Group Limited utilised the services of Easypay Services Limited, a Company specialising in funding and invoice financing. In addition, Easypay Services Limited funded and provided back office services to Lex Group Limited, processing the payroll in line with information submitted and supported by a signed time sheet, Easypay Services Limited then paid the temporary workers on behalf of Lex Group Limited as part of the funding arrangement. Once the payroll was complete, Easypay Services Limited raised an invoice to the end customer which was subsequently paid under an assignment of debt incorporated onto the invoice. The result being that Easypay Services Limited collect the debt and pay the agreed margin to Lex Group Lumited.
Administrators' statement of proposals (2017-03-13) · Companies House register