Autoworks Express Limited Liquidation Report

In the Matter of Autoworks Express Limited
And in the Matter of the Insolvency Act and Rules 1986
Company Number:
Trading As:
Formerly:
Registered Office:
Trading Address:
06755703
Autoworks Express Limited
No previous names.
The Lodge, Tanfield, Stanley, Durham, DH9 9PU
Binchester Lane Ends, Binchester, Bishop Auckland, County Durham,
DL14 8AW
In accordance with Rule 4.106, I, Eric Walls of KSA Group Limited, C12 Marquis Court,
Marquis Way, Team Valley, Gateshead, NE11 0RU, give notice that on 6 January 2012 I
was appointed liquidator of Autoworks Express Limited by resolutions of members and
creditors.
Notice is hereby given that the creditors of the above named company, which is being
voluntarily wound up, are required, on or before 30 April 2012 to send in their full forenames
and surnames, their addresses and descriptions, full particulars of their debts or claims, and
the names and addresses of their Solicitors (if any), to the undersigned E Walls (IP No.
9113) of KSA Group Limited, C12 Marquis Court, Marquis Way, Team Valley, Gateshead,
NE11 0RU, Alternative Contact: E Walls, insolvency@ksagroup.co.uk, 0191 482 3343, the
liquidator of the said company, and, if so required by notice in writing from the said liquidator,
are, personally or by their Solicitors, to come in and prove their debts or claims at such time
and place as shall be specified in such notice, or in default thereof they will be excluded from
the benefit of any distribution.
Dated: 9 January 2012
E Walls
Liquidator of Autoworks Express Ltd
www.ksagroup.co.uk
Insolvency Act 1986
Autoworks Express Limited
Estimated Statement Of Affairs as at 6 January 2012
Book Value
£
ASSETS
Intangible Assets
Property
Plant & Machinery, Fixtures
Motor Vehicles
Stock
Book Debts
Cash Held by Liquidator
Estimated to Realise
£
£
108,053.00
261,338.00
74,156.00
1,400.00
2,000.00
2,200.00
8.03
LIABILITIES
PREFERENTIAL CREDITORS:Employee Arrears/Hol Pay
6,990.00
950.00
100.00
500.00
8.03
8,548.03
2,706.25
2,706.25
5,841.78
DEBTS SECURED BY FLOATING CHARGE PRE 15 SEPTEMBER 2003
OTHER PRE 15 SEPTEMBER 2003 FLOATING CHARGE CREDITORS
NIL
5,841.78
Estimated prescribed part of net property where applicable (to carry forward)
NIL
5,841.78
DEBTS SECURED BY FLOATING CHARGE POST 15 SEPTEMBER 2003
NIL
5,841.78
Estimated prescribed part of net property where applicable (brought down)
Unsecured non-preferential claims (excluding any shortfall to floating charge holders)
Trade & Expense Creditors
Employees
Director
NIL
5,841.78
72,530.00
5,564.50
77,500.00
155,594.50
Estimated deficiency/surplus as regards non-preferential creditors
(excluding any shortfall in respect of F.C's post 14 September 2003)
Issued and called up capital
Ordinary Shareholders
(149,752.72)
(149,752.72)
100,000.00
100,000.00
(249,752.72)
TOTAL SURPLUS/(DEFICIENCY)
www.ksagroup.co.uk
Autoworks Express Limited – In Liquidation
Notes to the Estimated Statement of Affairs
1.
Amounts due to Natwest Bank plc
1.1
The amount due to Natwest Bank plc has been confirmed by the bank and is in respect of
the company’s overdraft and credit card facility.
1.2
The bank holds the following security in respect of the company’s indebtedness:
•
A debenture dated 26 July 2010 which created fixed and floating charges over the
assets of the company.
The validity of the debenture given by the company will of course need to be verified by the
liquidator in due course.
2.
Chattel Assets and Motor Vehicles
2.1
The chattel assets of the company have been valued by James Sutherland (Auctioneers)
Limited. The motor vehicles have also been valued by James Sutherland (Auctioneers)
Limited. Book values attributed to those assets in the statement of affairs have been taken
from the annual accounts for the year ended 30 November 2010.
3.
Book Debts
3.1
The book value figure for debtors has been taken from the books and records of the
company as at the date of liquidation. In assessing the amounts estimated to realise the
directors have:
•
Written off those debts which are known, or are thought to be, irrecoverable.
3.2
The directors have valued the book debts on this basis in order to present a prudent view of
the affairs of the company. Following liquidation the liquidator will endeavour to collect all
amounts due to the company.
4.
Amounts Due to Employees
4.1
In some instances it has been necessary to estimate the amounts due to employees in
respect of arrears of wages, holiday pay, pay in lieu of notice and redundancy.
5.
Trade and Expense Creditors
5.1
Details of amounts due to creditors have been taken from the books and records of the
company. Inclusion in the statement of affairs of the company does not constitute
agreement that these amounts are, or were at any time, owed by the company and does
not entitle a creditor to participate in any future distribution. In some cases the amount due
to creditors has been estimated due to a lack of available information.
6.
Costs and Expenses of Liquidation and Asset Realisation
6.1
The statement of affairs takes no account of the costs and expenses of the liquidation or
realising the assets of the company.
www.ksagroup.co.uk
Autoworks Express Limited – In Liquidation
Report To a Meeting Of Creditors Held Pursuant To Section 98 Of The Insolvency Act 1986
At The Park Head Country Hotel and Restaurant,
New Coundon, Bishop Aukland, County Durham, DL14 8QB
On 6 January 2012 At 11.30 am
1.
Statutory Information
1.1
Detailed below is information extracted either from the statutory books of the company or
from records held by the Registrar of Companies.
Previous Names:
N/A
Company Number:
06755703
Date of Incorporation:
21/11/2008
Registered Office:
was The Lodge, Tanfield, Stanley, Durham, DH9 9PU but
recently changed to C12 Marquis Court, Marquis Way, Team
Valley, Gateshead, NE11 0RU
Shareholding:
100,000 Ordinary Shares of £1 each, all of which have been
fully issued and paid
£1 Ordinary Shares
Mark Tate
70,000
A1 Autocraft Pension Fund
30,000
Shareholders:
Directors:
Mark Tate
Company Secretary:
N/A
Nature of Business:
Manufacture of motor vehicles
Trading Address:
Binchester Lane Ends, Binchester, Bishop Auckland, County
Durham, DL14 8AW
2.
History of the Company
2.1
The company was incorporated on 21 November 2008 and began trading at the beginning
of 2009. The company operated as a specialist in building replica classic cars
2.2
The company originally operated from a unit in Blaydon Business Park with three main
employees. The director worked largely in the work shop on repairs and developments
while a company manager worked on the marketing, financial and administration side of
the business, alongside an office administrator. As the company grew additional
employees were taken on to work in the garage workshop.
2.3
The company offered a unique car replica service and initially trading went well. As the
business continued to grow the director began to look for larger premises to allow the
company to take on more work and develop the services it offered. The company moved
into the premises at Binchester, Bishop Auckland. The new premises offered the company
the perfect opportunity to develop the company’s replica car building service further, while
also introducing a variety of new services, such as MOTs, servicing, tyres, exhausts,
repairs and car valeting. The premises were adapted to house the business, including the
addition of a coffee shop area.
www.ksagroup.co.uk
2.4
The director states he personally borrowed a large amount of money to invest into the
business at this time. By the end of 2010 the company was well established and the
director believes the company was starting to ‘hold its own’. As the company progressed
into 2010 the company continued to take on regular business, however the director states
the company soon began experiencing problems with poor cash flow and growing liabilities.
Although the business was bringing regular money from smaller jobs, such as valeting and
servicing it was insufficient to create a positive cash flow and the company continued to
struggle to meet its growing liabilities. Towards the end of 2011 it became apparent to the
director that the company could no longer meet creditor demands as and when they fell
due and there was no immediate source of additional investment to resolve cash flow
problems.
2.5
With this in mind a meeting was arranged with representatives of KSA Group Ltd. Based
on financial information provided by the director it was evident that the company was
insolvent. Having been so advised the director felt they had no option but to call the
meetings of shareholders and members necessary to place the company into voluntary
liquidation.
2.6
The director considers that the main reasons for the company’s failure were as follows:
1. Poor cash flow leading to problems paying liabilities; and
2. The lack of any available sources for additional investment.
3.
Meetings of Members and Creditors
3.1
At a meeting of the board of directors held on 5 December 2011 it was agreed that
meetings of members and creditors should be summoned for the purposes of placing the
company into Creditors Voluntary Liquidation. Notices were signed summoning the
meetings for 6 January 2012. The notices were issued to shareholders and creditors on 6
December 2011.
3.2
Accordingly, on 6 January 2012 at a meeting of the shareholders, duly convened at The
Park Head Country Hotel and Restaurant, New Coundon, Bishop Aukland, County
Durham, DL14 8QB resolutions were passed placing the company into Voluntary
Liquidation and appointing E Walls, who is licensed to act as an insolvency practitioner by
the Insolvency Practitioners Association, liquidator.
3.3
Prior to being asked to advise the director on the affairs of the company the partners and
staff of KSA Group Limited had had no material professional relationship with either the
company, its directors or shareholders.
4.
Transactions with Associated Companies or Trading Organisations
4.1
There are no known associated companies or trading organisations other than the
unincorporated business referred to above, although the director owns the building the
company traded from and is owed rent.
5.
Extracts from Accounts and other Financial Information
5.1
A summary of the company's recent financial history is attached at Appendix 1 to this
report.
6.
Review of the Trading of the Company
6.1
Following liquidation the liquidator will carry out a review of the trading of the company and
the conduct of its officers, and any third party involved in the management of the
company’s affairs.
www.ksagroup.co.uk
7.
Statement of Affairs
7.1
A statement of affairs of the company as at 6 January 2012 has been prepared by the
directors. A summary of the statement of affairs is attached to this report, along with
accompanying notes, and an estimated deficiency account in respect of the period of
trading.
7.2
The statement of affairs takes no account of the cost and expenses of the liquidation or of
realising the company’s assets.
7.
Business conducted at the meeting
7.1
A number of creditors attended the meeting and two proxies had been forwarded naming
the chairman of the meeting as proxy holder.
7.2
The chairman opened the meeting and Eric Walls of KSA Group Ltd, who had been
appointed liquidator of the company by the shareholders of Autoworks Express Limited
presented a brief report to the meeting and reviewed the statement of affairs of the
company which had been drawn up to the date of liquidation on his behalf.
7.3
A number of areas of concern were raised by creditors relating to the trading of the
company. It was confirmed it was for the liquidators to review these matters. There being
no further issues raised by the creditors the chairman moved to the formal business of the
meeting. Accordingly, creditors approved the following resolutions:
•
•
the appointment of E Walls of KSA Group Ltd, C12 Marquis Court, Marquis Way, Team
Valley, Gateshead, NE11 0RU, was confirmed.
a creditors’ committee was not established.
In the absence of a creditors committee:
•
•
•
the meeting was informed that no monies had yet been paid in respect of the costs of
calling the meetings of shareholders and creditors and assisting the directors in the
preparation of the statement of affairs. It was agreed that a charge of £4,500 plus VAT
plus disbursements would be levied by KSA Group Limited, in respect of these costs.
it was agreed that liquidator’s remuneration would be calculated by reference to time
costs incurred by the liquidator and his staff and authorisation was given for the
liquidator to draw remuneration on account of those time costs when he felt it was
appropriate.
The liquidator informed the meeting that the current charge out rates for staff likely to
deal with matters pertaining to this liquidation were as follows:
£ per hour
40 – 100
100 – 175
175 – 300
Administrators
Managers
Partners
•
•
the creditors agreed that all disbursements incurred by the liquidator’s firm should be
reimbursed at direct cost save in the case of postage, stationery and telephone for
which a charge of £7.50 per creditor would be levied, and motor travel where a charge
of 45p per mile would be made.
it was agreed that the level of the liquidator’s specific performance bond should be set
at £10,000.
www.ksagroup.co.uk
www.ksagroup.co.uk
Appendix 1
(Page 1 of 1)
Autoworks Express Limited
Summary of Recent Financial History
Accounting Information
The following information has been extracted from the Company's annual accounts for the
period ended 30 November 2010.
Annual
Accounts
30 November 2010
£
Annual
Accounts
30 November 2009
£
Turnover
28,621
-
Gross Profit
10,350
-
(75,834)
(29,251)
444,975
266,979
38,989
24,659
(489,049)
(220,889)
(5,085)
70,749
100,000
100,000
(105,085)
(29,251)
(5,085)
70,749
Profit and Loss Account
Dividends
Net profit / (Loss) After Taxation & Dividends
Balance Sheet
Fixed Assets
Current Assets
Liabilities
Total Assets Less Liabilities
Capital and reserves
Profit and loss account
Shareholders Reserves
www.ksagroup.co.uk
KSA Group Ltd
Autoworks Express Limited
B - Company Creditors
Unsecured Creditors
Name
Aviva
British Telecom
Bob Crosby Agencies Ltd
British Gas
Cid Express Couriers
Creative Graphics Limited
DMFX
D.Ward
D. Cadman
Driven Car Sales Ltd
D J Auto Glass
Edmar Tyres and Exhaust
HM Revenue and Customs
HM Revenue and Customs
J Mcadoor
Jill Hendry
K Stainsby
Lloyd Bodyshop Ltd
Mark Tate
Northumbrian Water
Premium Autocare Ltd
Pullan Barnes Limited
Speedo Motor Accessories
Star Radio
Spenco
Address
St Helen's, 1 Undershaft, London, EC3P 3DQ, United Kingdom
81 Newgate Street, London, EC1A 7AJ
Crosby House, Fieldclose, Clarence Street, Newcastle upon Tyne, NE2 1AJ
PO Box 7685, Leicester, LE19 1ZE, A3417130
7 Boundry Close, Usha Moor, Durham, DH7 7FB
12 Peel Street, Bishop Aukland, Co Durham, DL14 7LF
160 North Road, Darlington, DL1 2EJ
10 Peel Street, Bishop Aukland, Co Durham, D114 7LF
Causey Cottage, 2 The Causeway, Wolsingham, County Durham, Bishop Auckland, DL13 3AZ
Middleway, Mandale triangle, Thornaby, Stockton on Tees, TS17 6BZ
Tanfield Manor, Tanfield Village, Stanley, Co. Durham, DH9 9PU
The Old School, Coulson St, Spennymoor, Co Durham, D116 7RS
Insolvency Operation, Queens Dock, Liverpool, L74 4AF
Durrington Bridge Hosue, Barrington Road, Worthing, West Sussex, BN12 4SE
4 Primrose Bank Avenue, Coults, Aberdeen, AB15 9PD
No2 YMCA, Herrington Burn, Houghton-le-sping, DH4 4JW
Unknown
Newcastle, Hunters Road, Spital Tongues, Newcastle upon Tyne, NE2 4ND
The Lodge, Tanfield Manor, Stanley, DH9 9PU
Customer Centre, PO Box 300, Durham, DH1 9WQ
54a Hookstone Avenue, Harogate, North Yorkshire, HG2 8ER
Stephenson House, Richard Street, Hetton le Hole, Tyne and Wear, DH5 9HW
The Empire Building, 12 South Street, Crook, Co Durham, DL15 8NE
Chessingham Hosue, Chessingham park, Dunnington, York, YO19 5SE
Tudue Ind Est, Spennymoor, Co Durham, DL16 6TG
£
1,050.00
428.43
72.00
1,627.63
250.00
1,351.42
1,205.91
294.32
5,000.00
1,783.00
252.00
430.01
2,250.00
20,000.00
5,000.00
2,102.94
3,600.00
1,680.00
77,500.00
101.70
158.58
5,681.50
158.19
1,080.00
720.00
Total
Secured Creditors
Name
Natwet Bank Plc
133,777.63
Address
Floor 9, 1 Hardman Bolevard, Manchester, M3 3AQ
Total
£
16,252.37
16,252.37
www.ksagroup.co.uk
Autoworks Express Limited
Estimated Deficiency Account
For the period from 1 December 2010 to 6 January 2012.
£
Reserves Balance at 30 November 2010
£
(105,085)
Amounts written off for the purposes of the statement
Intangiable Assets
Property
Plant & Machinery, Fixtures & Fittings
Motor Vehicles
Stock
Book Debts
108,053
261,338
67,166
450
1,900
1,700
(440,607)
(545,692)
Extraordinary Items
Employees Claims - Redundancy & Notice Pay
Creditor Adjustment
(5,565)
609,447
603,882
58,190
ASSUMED TRADING PROFIT/(LOSS) FOR THE PERIOD
(207,943)
CREDITORS DEFICIENCY PER STATEMENT OF AFFAIRS
(149,753)
www.ksagroup.co.uk