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Administrators from recovery firm Begbies Traynor have sold the business as a going concern to Barcon Systems Ltd.
Joint administrator Jason Greenhalgh, partner at Begbies Traynor in Manchester said: “As a result of this sale the 24 jobs at the site have been saved. It has also resulted in many of the customers’ orders remaining on track with the purchaser now working hard to meet the deadlines.”
He added: “The company began to experience financial difficulties as a consequence of a large debtor write off in 2011 which resulted in cash flow problems. Prior to this the Company had experienced a downturn in the orders as a result of the recession, but were managing to keep the business trading with time to pay arrangements with HMRC.
“In 2011 further VAT liabilities and surcharges were incurred which were in excess of £100,000 and a further time to pay arrangement was agreed. With the final payment becoming due under the agreement, the bad debt was incurred which prevented payment being made. Despite the directors efforts to keep the Company trading it became difficult to fund the trading and make the payment due to HMRC under the time to pay agreement. Despite attempts to reach a further agreement with HMRC, a winding up petition was presented by HMRC in Dec 2012.”
Barcon Precast Ltd had a turnover of £1,517,739 in the year ended 30 September 2011. The current director, Peter Messenger has been a sole director since 2005.
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