Fri, 11 Dec 2020 | ADMINISTRATION
Kent-based contractor Coombs (Canterbury) Limited has fallen into administration, blaming a poor trading position that was then exacerbated by the COVID-19 pandemic. Thomas D’Arcy and Christopher Latos of White Maund Insolvency Practitioners have been appointed as joint administrators.
The administrators stated that: “Over the course of the last year the trading position of the company deteriorated a situation that was exacerbated by the pandemic.”
“The directors had been seeking investment to enable the company to trade on but it was not until the end of October 2020 that the investors confirmed they would not proceed. The directors then took specialist advice and were advised that the company should cease trading and be placed in administration.”
Coombs was formed in 1971 and worked on projects in a variety of sectors, including commercial, healthcare, education, housebuilding and leisure. Its clients ranged from Canterbury Christ Church University to commercial operators including Ford, Shell and the Royal Mail.
Prior to the administration, Coombs was working on three projects with housing associations and local authorities. Among these was the 16-home Kingsmead Field development with Canterbury City Council, work on which has now stalled while the contract is put back out to tender.
The company had also recently won a place on the £2 billion housing association contractor framework Hyde Group, serving £5 million - £10 million projects across Kent.
Coombs fell under two holding companies, Coombs South East and parent company Coombs Holdings Limited, neither of which are impacted by the administration.
In its most recent financial report, to the year ending July 31 2018, Coombs reported an increase in turnover to £16 million from £11.3 million the previous year. However, its profits after tax fell from £109,405 in 2017 to £57,762.
The company owed £4.2 million to creditors within one year. Its fixed assets were valued at £67,849, with current assets of £5.6 million, up from £4.3 million the year prior. Its net assets stood at £1.4 million.
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