Labour Management Systems Ltd (10103037): administration
- Status
- Administration ended
- Administration began
- 2019-11-19
- Administrators
- James Fish, Alan Brian Coleman
- Administrators' firm
- FTS Recovery
- Incorporated
- 2016-04-05
- Location
- Manchester
- Industry
- 78200 Temporary employment agency activities
Why it went into administration
- HMRC / tax arrears
- Bad debts / customer insolvency
- Rising costs / inflation
- Sustained trading losses
From the administrators' statement
The Company was incorporated on 5 April 2016 and commenced trading on 18 January 2017 as a temporary labour agency for all levels of Traffic Management Operatives.
Since incorporation, the Company has put in place all of the required infrastructure and accreditations needed, The Company has compiled a database of skilled traffic management operatives who are now reliant upon the Company to find them work. The Company built a good reputation within the industry and became a tier 1 supplier for a number of major contractors engaged by Highways England.
The directors built the Company from a standstill to a c£2.5m per year turnover business and simply withdrew cash as and when required believing that the business would continue to grow and the drawings could be converted to dividends and salary at the appropriate point in time. Ultimately, the Company could not afford to pay the level of monthly remuneration being taken out of the business and considerable losses were reported.
Administrators' statement of proposals (2019-12-12) · Companies House register