Mon, 22 May 2023 | ADMINISTRATION
Administrators are conducting an accelerated sale process for a prominent Worcestershire designer, manufacturer and installer of kitchens, worktops and appliances. Pembar Ltd, which trades as Hatt Kitchens, fell into administration on May 15.
Lee Causer and Mark Thornton, business restructuring partners at BDO LLP, were appointed as joint administrators and will now seek to secure the future of the company through an accelerated sale process for its business and assets.
The company, which has a staff headcount of 88, reported turnover of slightly over £11 million for the year ending April 30 2022, up slightly from £10.94 million a year earlier. However, the company fell from a £120,586 post-tax profit in 2021 to a loss of £331,953, with directors citing construction delays, COVID-19, the cost and availability of raw materials and distribution costs as factors.
The firm also saw its retail showroom close in December 2021, ceasing its retail sales which had previously accounted for approximately 5 per cent of its turnover. However, directors reported that the company had secured contracts over the coming two years that were “well in excess of forecasted profits” and added that revenue deferred due to COVID-19 and construction delays would be invoiced over the next 12 months.
However, despite this optimism, the company was unable to avoid entering administration, with joint administrator Lee Causer saying that the firm was “unable to generate the level of trading profits and cash necessary to maintain production activity”.
Causer said that, while efforts were made to secure additional investment for the firm, its financial position meant these efforts proved unsuccessful. He added: "This is another unfortunate example of the headwinds faced by the construction and manufacturing sectors. We are hopeful of completing a sale of the business and assets, ensuring the security of the majority of jobs."
In its accounts for the year ending April 30 2022, the company’s fixed assets were valued at £1.7 million and current assets at £4.3 million. At the time, the company’s net assets amounted to £1.7 million.
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