Castlebridge Plant Limited (SC214849): administration
- Status
- Administration ended
- Administration began
- 2013-04-19
- Administrators
- Blair Carnegie Nimmo, Gerard Anthony Friar
- Administrators' firm
- KPMG
- Formerly
- HMS (379) Limited
- Incorporated
- 2001-01-17
- Location
- Glasgow
- Industry
- 82990 Other business support service activities n.e.c.
Why it went into administration
- Energy costs
- Funding withdrawn / unable to refinance
From the administrators' statement
In 2010, SRG planned an initial public offering (“IPO”) on the London Stock Exchange. In the lead up to this flotation, SCCL had committed to a number of sales contracts over the medium term, which, given the quantum of production required to fulfil these. contracts, led to the commencement of operations at a number of new sites. As part of this process, the Company made a significant investment in its plant and machinery fleet. Unfortunately, in July 2010, the IPO was abandoned at the last minute. By this time, SCCL was operating 9 sites with there being approximately 1,000 employees across the SRG group.
Certain of the sites that had commenced operations in contemplation of the IPO had relatively short term operating life cycles. The reserves at these sites were due to be exhausted during 2013 and 2014, meanwhile, in order to open new sites, significant new investment was required.
Since 2010, SCCL’s financial performance had been in decline due to the fall in coal prices and an increase in mining costs, particularly in relation to fuel costs (with large volumes of fuel required to power the Company’s plant and machinery fleet): A combination of these factors meant that SCCL’s cash flow, and in tum that of the
Administrators' statement of proposals (2013-06-17) · Companies House register