About Us

Our comprehensive free business review revealed a fundamentally sound business that was seriously under-capitalised. As a result the Company was coming under severe creditor pressure including the threat of a winding up petition from the Inland Revenue. With turnover exceeding £3 million, its sole facility was a £50,000 overdraft, on which it was incurring charges at 4% over the base rate.

We invited two factoring companies to review the Company’s sales ledger, following which finance facilities were secured at 1.75% over base. Additional working capital was generated via asset finance raised against some of the Company’s fleet of vehicles.

As a result of our relationship with it’s accountants leading to our early intervention, the company survived and remains in business today.

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At the board meeting it became apparent that although the Company had been trading for in excess of 20 years and boasted a blue chip client base, expansion into the Far East, coupled with a collapse in spending caused by September 11th, had put considerable pressure on cash flow. Indeed the Company was under the threat of a winding up petition.

The project based nature of the business made forecasting performance very difficult. It was however apparent that although the business model was fundamentally sound, the Company needed restructuring to bring its cost base in line with achievable turnover.

Harrisons assisted the Directors in proposing a three year Company Voluntary Arrangement, and this has created the space for the Directors to carry out the necessary restructuring. As a result the Company has survived a period of intense difficulty and is being positioned to continue trading successfully.

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With a turnover in excess of £2 million, the company was trading out of two West London premises, owning the freehold of one and leasing the other. It was also providing in-house reprographic facilities at a major advertising agency and a London college.

We acted quickly to secure the position having to cease trading whilst looking to secure a quick sale. We completed negotiations for the sale of the business including the Company’s freehold interest within two days and this would have resulted in full repayment of the debenture. The Bank’s decision to accept the deal required approval from its Head Office in Europe, which delayed the process by a number of days, resulting in a reduction in the offer and subsequent shortfall to the Bank.

However, because we ensured that the purchasers commenced trading promptly, employing all original company staff and continuing to supply existing clients, not only did we retain the goodwill of the company, but we were also able to collect outstanding book debts and limit the debenture shortfall to £30,000 (after costs), against a total debt of £750,000.

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The businesses traded from leasehold sites in Essex and Chatham dockyard and freehold contaminated land at Rochester, but had no significant value other than the trade itself.

We continued trading the businesses whilst actively seeking a purchaser and during this period achieved trading profits of in excess of £500,000.

Each business was sold individually, with the freehold at Rochester being sold to the council. Realisations proved enough to repay the Bank in full to the level of its security, pay the preferential creditors in full and pass a surplus to a liquidator totalling £2.6 million.

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During a period when he was undergoing difficulties in his marriage, we negotiated with his personal creditors agreeing with them an informal arrangement providing the best possible outcome for all involved and avoiding the adverse consequences of bankruptcy or an individual voluntary arrangement.

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