SFP’s Daniel and Simon Plant – both licensed members of the Insolvency Practitioners’ Association – were appointed joint Administrators on 4th April 2011, AGS Scaffolding had accumulated significant debts including more than £300,000 owed to Her Majesty’s Revenue and Customs (HMRC).
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With an estimated annual turnover of £2.5 million, AGS was established some 15 years ago with strong roots in London. It has been responsible for scaffolding and sight screening at a number of high profile locations including Tate Modern and The Monument.
Simon Plant, Group Partner at SFP, says that pressures within the construction sector and a reliance of a small number of major projects placed serious pressure on cashflow: "AGS only recently completed work at a landmark London hotel – the Savoy – and soon after experienced a significant reduction in turnover that in turn impacted their cashflow," he said. "Their difficulties were further compounded by failing to accrue for a hefty debt to the HMRC."
Despite these issues, the joint Administrators were still able to successfully conclude a sale: "We were hopeful of a positive outcome and in selling the firm back to management have managed to save the majority of the workforce," Simon concluded.
(GK/BMcC)
