Wed, 05 Jun 2024 | ADMINISTRATION
A commercial printer based in Shoreham-by-Sea, West Sussex has ceased trading and says it will enter administration later this week. 126 employees at Gemini Print Southern Limited have been made redundant, with around 10 staff retained in the short term to fulfil existing commitments and orders.
According to the company’s board, the decision to place the business into administration was the result of an accumulation of factors. Trading had been seriously impacted by the COVID-19 pandemic and struggled to recover fully in the aftermath.
The company’s challenges were exacerbated by inflationary pressures, which led to sharp increases in energy and rental costs. A substantial debt owed to the company, meanwhile, remains unpaid and directors said it is likely to become subject to legal proceedings.
In a statement, the board said the firm had been “placed in an impossible situation and has a legal obligation not to trade whilst insolvent.” The directors added that, despite striving in recent months to address the company’s financial issues, they have been unable to secure a solution to enable it to continue trading.
Speaking to trade publication Printweek, the firm said that “every effort” had been made to avoid insolvency, “including seeking a sale of the business”.
The company added that the administrators, who have not yet been named, will seek to maximise creditor realisations, including “seeking offers on the company’s unencumbered assets through specialist asset valuation and disposal agents Eddisons.”
Founded in 1971, the firm provided services including print and finishing, personalisation, creative and design and mailing and fulfilment.
In its accounts to the year ending July 31 2022, Gemini Print reported turnover of £16.5 million, compared to £17.3 million in the 18 months to July 31 2021, and recovered from a pre-tax loss of £2.1 million to record pre-tax profits of nearly £250,000.
Prior to COVID-19, the company had reported turnover of close to £20 million. During the pandemic, however, production ceased at a site in Bristol and turnover fell as a result of the effect on its operations.
As of July 31 2022, its fixed assets were valued at slightly over £5 million, while current assets were around £3.9 million. Total equity at the time stood at £228,735.
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