Friday, 8 February 2013
KSA Group files 4 CVAs to restructure a group of companies
Even when a company’s accounts and records are very poor and there is a tight timescale KSA Group can rescue a business!
We were approached by a South East-based IT and logistics group. The directors had heard about our work with two previous clients and as such wanted us to help them.
The group came about as a result of a business purchase by a joint venture of two companies.
Group sales were planned to be £25m, however , as below, targets were missed due to loss of contracts. Sales were sub £12m when we arrived.
A number of separate companies were created to purchase the assets, handle the employees and there were a couple of associated companies that provided services to the others. During the acquisitions a finance director was brought in who did not manage the accounts properly and there was poor compliance with HMRC. HMRC were owed some £2m across the group. RBS was providing and invoice finance of £1.5-2.2m
However, due to a fall in revenues caused by loss of a key contract with a government agency the whole group was under pressure. A winding up petition was issued against one company in the group which caused significant time constraints.
So what did KSA group do?
Read the CVA case study and find out