The company specialises in the design, manufacture and installation of laboratories, cleanrooms and controlled environments. A highly renowned and specialist firm, they operated globally with a number of blue chip clients within the pharmaceutical, biotech, healthcare and electronics sectors.
A number of factors came to a head which caused significant financial problems for the company, leaving them to seek professional advice. The main factors were:
1) Cash flow problems caused by the continual extension of client payment terms.
2) A poorly performing project that led to a significant loss sustained by the business.
3) Two major projects had been expected to begin, but had hit delays – this had a detrimental effect on the business.
4) An issue with historical costs was discovered and these costs had not previously been taken into account with the business forecasts.
Taking the above issues into consideration and with the company experiencing increasing pressure from creditors, the directors contacted our insolvency specialists to obtain professional insolvency advice and discuss the options available. Based on the advice given, it was concluded that an administration procedure was the most appropriate course of action. The business was placed into administration and continued to trade while ongoing contracts were brought to completion and a buyer was sought for the business as a going concern.
A sale was completed to a new company which specialises in the design and installation of bespoke engineering solutions and the company continued to trade under its original name.