S3456 Limited (SC184148): administration
- Status
- Administration ended
- Administration began
- 2011-11-11
- Administrators' firm
- KPMG
- Formerly
- Shetland Wind Power Limited
- Incorporated
- 1998-03-24
- Location
- Glasgow
- Industry
- 7487
Why it went into administration
- Sustained trading losses
- Weak consumer demand
- Loss-making contracts / project overruns
From the administrators' statement
The Company began trading in 1998, operating as a reseller and installer of small wind turbines, primarily in the Shetland Islands. In the years following its incorporation, the Company expanded its operations to also cover mainland Scotland, steadily increasing turnover through organic growth.
In more recent years, the Company’s turnover grew substantially from £0.96 million in the year to 31 March 2009 to £1.90 million in the year to 31 March 2010, reflecting the introduction of the Government’s Feed in Tariff Scheme (“FiTS”) and a general increase in the popularity of renewable energy devices and the renewable sector as a whole. In the year to 31 March 2010, the Company made a net profit of £415,000.
In the 2011 calendar year, the Company encountered challenging trading conditions with certain key projects being delayed due to complications in customers obtaining planning consent. Furthermore, in mid-September 2011, the Company’s main supplier, Proven Energy Limited (“PEL”) was placed into receivership following the discovery of a fundamental manufacturing defect in its flagship turbine. The Company’s order pipeline mainly comprised of the affected PEL turbines, and with no comparable alternative to offer its customers, the Company’s ability to continue trading was materially hampered. This precipitated significant cash-flow pressures and led to a loss of £536,000 being incurred in the six month period to 30 September 2011, leaving the Company with a funding deficit.
Administrators' statement of proposals (2012-01-06) · Companies House register