MENU

Case Study 1 – Security Services Company

Security Services

Location: Nottinghamshire
Established: 2006
Turnover £640,000
Debts: PAYE & VAT (primarily)

The company grew rapidly and was continuing to win new contracts. Whilst turnover was strong the actual profit margin was poor and in fact in some cases the true cost of providing the service were not being met.

Contracts had not been costed properly and the accounting system was non existent. The company was leaking money and when we scratched the surface it was clear that large debts had built up.

Fundamentally the business was sound and we were able to get the accounting system right and through monthly monitoring and meetings they are now back on track. With regard to the debt (the Inland Revenue were threatening to wind the business up) we were able to arrange a CVA for an initial amount of £720.

Once we had explained the situation the Inland Revenue were in fact helpful throughout and understood that a realistic amount initially would allow the business to recover.

This amount was affordable and bought the company time, after 12 month payments increased to £1,080 a month but by that time the business was back on track.

If your business is facing similar problems, contact us now and we can help and arrange to step in on your behalf.

To find out the best option for your business try our free...


Case Study 2 – Builder

Builder

Location: Kent
Turnover: £1,200,000
Debts: Builders Merchants (Primarily)

The downturn in the housing market saw a major change in fortunes for this company. Contracts disappeared and existing projects were scaled back. Having taken on employees and bought additional equipment during the housing boom this left the business in an impossible situation.

It reached the point where staff could not be paid and redundancy payments were not available. With suppliers also threatening legal action there was no alternative but to liquidate the firm.

The Liquidator was able to ensure the process went smoothly and that the assets were sold for market value. The Liquidators were also able to pay a small dividend to creditors. The Directors purchased the trading name of the Company after putting forward the best offer and decided to start a new Company after complying with the relevant restrictions around reusing a liquidated company name.

Liquidation may not be as bad as you think and allowed the directors of this business to move on and plan for the future.

To find out the best option for your business try our free...


Case Study 3 – Florist

Florist

Location: Lancashire
Turnover: £140,000
Debts: Tax & VAT

Like most businesses this limited company saw a fall in sales as the recession took hold. Flowers were seen as a luxury item and with money tight customers dried up. The bigger wedding and corporate buyers also began to spend less and within 12 months the business had serious cash flow problems.

Outstanding invoices had to be paid or the companies would stop supplying flowers and as such the tax & VAT funds were increasingly used.

When the reminders letters arrived from HMRC they were basically ignored until finally a winding up notice was issued.

This is when we were contacted and began to turn things around. We had limited time but were able to negotiate a repayment plan with HMRC which gave the business some room to breath. In that time we looked at why this problem had occurred and what action could be taken. With trade lower we helped to negotiate reduced prices with suppliers and also sourced some new contracts.

Other cost saving measured were also introduced and the company is now back on a stable footing.

To find out the best option for your business try our free...


Why pay for business advice?


At the Insolvency Practice we help over 100 Directors a month, so no matter what you are facing we will be able to assist you. In these difficult times it is important to get some free advice if you business is struggling… unprecedented levels of support have been provided by the Government and if you decide to close your company we can explain all the options available.

You probably have more options than you think… new rules were introduced 6th April 2017 and since then closing your company has become much easier and far less expensive.

To find out the best option for your business try our free...



Case Study 1 – Security Services Company


Contracts had not been costed properly and the accounting system was non existent. The company was leaking money and when we scratched the surface it was clear that large debts had built up.


Case Study 2 – Builder


The downturn in the housing market saw a major change in fortunes for this company. Contracts disappeared and existing projects were scaled back. Having taken on employees and bought additional equipment during the housing boom this left the business in an impossible situation.


Case Study 3 – Florist


Like most businesses this limited company saw a fall in sales as the recession took hold. Flowers were seen as a luxury item and with money tight customers dried up. The bigger wedding and corporate buyers also began to spend less.