Mon, 22 Jul 2024 | ADMINISTRATION
Axis Studios, a VFX and animation house with operations in Glasgow and Bristol, has fallen into administration. The company has provided VFX and animation for major feature films and TV programmes, as well as working in the games industry.
Despite seeing an increase in demand during the COVID-19 pandemic, the company has subsequently suffered from a decline in projects, as well as increasing labour costs, which resulted in cashflow issues.
Although directors had sought to explore other options for the business, it was ultimately decided that it should be placed into administration. Alistair McAlinden and Geoff Jacobs of Interpath Advisory were subsequently appointed as joint administrators to Axis Productions Limited and Axis VFX Limited, both trading as Axis Studios, on July 15.
Following the appointment of the joint administrators, 162 staff have been made redundant, with four staff retained to assist in the orderly wind down of the business. Production has ceased on all projects and administrators are now seeking operators to continue with live projects.
Joint administrator and Head of Interpath Advisory in Scotland Alistair McAlinden said: “It is a great shame to see a creative business in Scotland close its doors. Axis has been a studio of choice for key production companies and has produced content for household names such as the BBC, Netflix and Blizzard Entertainment. The Company experienced a high demand for its services during COVID as animation and visual effects for TV, film and videogames skyrocketed.”
“Unfortunately, however, Axis has more recently been impacted by a decline in customer projects, as well as increases in labour costs which have resulted in severe cash flow problems. The directors worked tirelessly to explore alternative solutions, but ultimately had to take the difficult decision to seek the appointment of administrators.”
Fellow joint administrator Geoff Jacobs urged any parties interested in Axis’ live projects to contact them immediately.
In the company’s accounts for the year to November 30 2022, it reported revenue of £23.7 million, down from £27.3 million a year earlier, but saw its operating profit increase from £197,000 to £382,000. At the time, its non-current assets were valued at £4.7 million and current assets at £5.5 million, with total equity standing at £3.07 million.
Find out about M&A trends in the UK's film and TV industry
Click here to download our free guide on finding and buying distressed businesses and assets
Established in 1990, this company has evolved into a market leader in the dynamic field of digital signage solutions, building on over 30 years of expertise in computer graphics, animation, and technology integration.
Represents a rare occasion for an acquirer seeking a Yorkshire based attractions creative design, production and management business.
Long-established print management and design company managed by an experienced team who will remain in situ post acquisition.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.