Administration of Brighton Sheet Metal

Moorfields were appointed as Administrators over Brighton Sheet Metal Limited, a long-established precision engineering and fabrication business operating from a 50,000 sq ft long-leasehold facility.

The company had faced severe financial pressures due to declining orders, margin erosion, and increasing operational costs. Despite active marketing efforts, no going concern purchaser could be found for the business.

Moorfields were therefore appointed to manage a short-term trading strategy followed by an orderly wind-down of operations with the objective of maximising realisations for creditors while preserving value in the company’s assets.

Objectives

• Implement a short-term trading plan to maximise revenue from remaining stock and work-in-progress (WIP)
• Retain and incentivise key employees to complete and fulfil outstanding customer orders
• Protect and enhance the value of the company’s tangible assets, including property, plant, and machinery
• Conduct an orderly wind-down of operations to minimise disruption and costs
• Maximise recoveries for secured, preferential, and unsecured creditors

Moorfields’ Actions

• Implemented a short-term trading plan designed to continue limited operations and convert existing WIP into sales
• Retained a skeleton workforce to fulfil as many outstanding customer orders as possible prior to closure
• Introduced employee incentive schemes to boost productivity and drive additional sales performance
• Oversaw the marketing and sale of the company’s assets, including its 50,000 sq ft long-leasehold premises and extensive plant and machinery
• Managed all realisations and creditor communications efficiently to ensure a transparent and timely distribution process

Results

• Projected sales during the two-week trading period were exceeded by more than £125,000
• The long-leasehold premises were sold for 70% above market valuation
• The plant and machinery were sold for 35% above their valuation price
• Both secured creditors were repaid in full within six months of appointment
• Preferential creditors were paid in full, and a meaningful dividend was made to unsecured creditors.