Fri, 19 Jul 2024 | ADMINISTRATION
A manufacturer based in Worcestershire has fallen into administration, with efforts now underway to find a buyer for the business and its assets. QM Systems Limited, a subsidiary of PipeHawk Plc, was placed into administration as a result of financial difficulties.
The company is based on Hartlebury Trading Estate and provides multi-disciplinary design and manufacturing of automated production lines and test systems for the industrial sectors.
In the last financial year, QM Systems was reported to account for 65 per cent of PipeHawk’s revenue, but also reported a loss. As a result of ongoing financial challenges, the parent company appointed Matthew Haw and Diana Frangou of RSM UK Restructuring Advisory LLP as joint administrators of QM Systems on July 15.
The joint administrators are considering options for the firm and are hoping to secure a buyer for the business and its assets as a going concern. If a sale as a going concern is not possible, the joint administrators will seek to maximise realisations from the company’s assets in order to benefit creditors and support customers during the transition of existing product lines.
RSM UK Restructuring Advisory partner and joint administrator Matthew Haw commented: "Due to a number of unexpected factors, the company faced significant cashflow pressures, which resulted in the directors appointing administrators in order to protect the creditors and employees' interests."
In the company’s most recent accounts at Companies House, for the year to June 30 2023, it reported turnover of £4.18 million, up from slightly over £3 million a year earlier, while gross profits increased from £122,291 in 2022 to £914,012.
However, its post tax losses rose considerably from £486,697 to £972,847. At the time, its fixed assets were valued at £396,260 and current assets at £4.3 million, with debts meaning that its net assets amounted to £111,876.
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