The client & the situation
Our team worked with the Director of a Precision Engineering Company for several months, following a downturn in trade. The Company manufactured parts for the aerospace and automotive industries, both of which had been significantly impacted by the Pandemic and therefore reduced order volumes. Initially we were engaged on an Advisory basis to assist with cashflow management, negotiate a payment plan with HMRC and advise on Director duties. It was anticipated that the Company could trade out of its financial position. The Company utilised an invoiced discounting facility and we kept the lender updated regularly with regard to progress and our advice.
The Director was considering different initiatives in order to increase income. There was a vast quantity of empty office space, and he decided to rent out some of the office space to generate some additional revenue. However, the “tenants” were subsequently revealed to be a criminal gang who used the office space to set up a Cannabis factory. The property was raided by police, the occupant and Director were arrested and all staff were sent home. The business had not traded for several weeks, cash availability was limited and HMRC were threatening enforcement action. The Director called to explain the position and asked our team to assist with a sale of the business.
