Precision Motor-Sport Engineering Co - Oxfordshire
Turnover £550,000 loss £60,000
With PAYE and VAT debts of over £105,000 and nowhere to turn, the owners had approached their accountants and some recommended Insolvency Practitioners for help and advice. Unfortunately, their accountants couldn't help and the Insolvency Practitioners wouldn't commence work for less than £4,500 in upfront fees. In December 2002 the company approached Sherwood, Taylor & Whyte and within 6 months they had de-factored and had locked in place a workable payment plan with the revenue.
All trade creditors had been personally met with, and we achieved a signed repayment schedule by month 7 of intervention. The subsequent changes within the business resulted in a cash flow re-alignment and the company was in credit at the bank by £5,000 as well as showing a nett profit of £18,000 on sales of £300,000 by month 12. Our intervention resulted in staff changes as well as Operational and Sales alterations which proved difficult at first but are currently bearing fruit!
The client started paying Sherwood, Taylor & Whyte in May 2003, some 5 months after we commenced intervention under our special payment arrangement service which is open to all business rescue clients.