AABRS have been advising a project management company, based in Rainham, Essex.
The Company was formed as a vehicle through which the sole Director could provide his project management skills predominantly to the construction and technology sectors.
Having never negotiated an overdraft facility from the Company’s bankers the Company was reliant on its own cash flow for liquidity.
Contracts, which typically spanned 6/18 months, remunerated the Director at a rate between £250-300 per day.
However, following a drop in demand for external consultants, due to the ongoing economic uncertainty, the Director had no work and during this period, the Company’s reserves were gradually eroded.
The Director’s last contract completed in 2014 and with no new contract in the pipeline, he decided to accept a permanent job offer.
With insufficient funds available to discharge the Company’s outstanding liabilities in the region of £39,000 mainly owing to HM Revenue and Customs and conscious of his duties as a director, professional advice was sought and AABRS advised that the best option available was to liquidate the company.