RM Group Hull Limited (10683964): administration
- Status
- Administration ended
- Administration began
- 2019-07-23
- Administrators
- Julian Pitts, Andrew Graham Mackenzie
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2017-03-22
- Location
- Hull
- Industry
- 49410 Freight transport by road
Why it went into administration
- HMRC / tax arrears
- Cash flow / liquidity pressure
- Bad debts / customer insolvency
- Creditor pressure / legal action
- Sustained trading losses
From the administrators' statement
The first year of trade was successful, with the high initial costs having been met, the director was confident in continuing to grow the Company's profits throughout the upcoming financial year.
However, in the latter stages of 2018 the Company faced several set-backs, including bad debts of circa £38,000 and an accident involving one of the vehicles owned by a connected company but which they operated, causing significant cost and disruption to the business. This left less time to deal with the normal every day business.
Cashflow was notably affected during this period and as a result of insufficient working capital to service the ransom suppliers in the prior period, which was further compounded by a downturn in new work as result of the negative publicity.
Administrators' statement of proposals (2019-08-16) · Companies House register