Derl Oldco Ltd (09956190): administration
- Status
- In administration
- Administration began
- 2025-02-28
- Administrators
- Gareth Howarth
- Administrators' firm
- Path Business Recovery
- Formerly
- Dunbar Education Recruitment Limited; Abacus Education Recruitment Limited
- Incorporated
- 2016-01-18
- Location
- Manchester
- Industry
- 78109 Other activities of employment placement agencies
Why it went into administration
- Sustained trading losses
- HMRC / tax arrears
From the administrators' statement
3.1 In 2024, the Company made substantial investments in staff, a new office, and marketing, anticipating a rise in permanent teacher placements. The workforce was expanded to 58, including approximately 30 fee-generating consultants. The Company also sought to expand into new UK regions and opened a London office.
However, the expected increase in revenue did not materialise. Instead, turnover declined by approximately £500,000.00, while salary costs increased by £500,000.00, leading to financial losses. Additional challenges arose when key employees left to establish a competing business, significantly impacting gross profits. Furthermore, underperforming consultants contributed to declining revenues.
Per the Management Accounts for the year ended 30 September 2024, the Company reported a 20% decline in turnover and a loss of approximately £0.3m. A significant contributor to this loss was the £1.5m spent on salaries, representing a 50% increase from the previous year. The cash flow situation was further strained by the delay between sourcing permanent staff and receiving payments, as most placements commenced in September.
Administrators' statement of proposals (2025-03-18) · Companies House register