JMP Realisations Limited (SC088006): administration
- Status
- Administration ended
- Administration began
- 2013-05-14
- Administrators' firm
- KPMG
- Formerly
- J M P Consultants Limited; Oloryont Limited
- Incorporated
- 1984-05-14
- Location
- Edinburgh
- Industry
- 71129 Other engineering activities
Why it went into administration
- Pension deficit
- Funding withdrawn / unable to refinance
- Sustained trading losses
- Regulatory change or action
From the administrators' statement
The Company has seen a reduction in profits in recent years due to a difficult trading environment. Despite significant operational restructuring, such as headcount reductions and short time working arrangements, the Company recorded a net operating loss in each of the last 3 years.
The JMP Consultants Defined Benefit Pension Scheme has been in deficit for several years. Following third party review of the deficit position, it was concluded that incorporating this liability into the Company’s balance sheet resulted in the Company becoming balance sheet insolvent.
The Pensions Regulator (tPR) requested that a recovery plan be in place by July 2013. The Company’s pension scheme advisor, Spence & Partners Limited (“S&P”), advised that a recovery plan over a 10 year basis would require contributions of £800,000 to £900,000 per annum. This would be a significant cash outflow, which the Company’s financial forecasts indicated it would be unable to meet. As a result the Company was unable to put an acceptable recovery plan in place to rectify the deficit.
Administrators' statement of proposals (2013-06-21) · Companies House register