The service and maintenance business of JD Cooling Systems was acquired by its directors in a pre-packaged deal for £162,116, the administrator’s report reveals.
The new company JD Cooling Service and Maintenance, a previously dormant company, was established in February 2021 as JD Cooling Renewables. It changed its name to JD Cooling Service and Maintenance on August 17 and completed the purchase on August 25.
J D Cooling Systems was placed into administration on August 17. The company made a loss of £939,581 in the year to May 31, 2022, after seeing turnover drop from nearly £30m to £16.5m in that time.
The creditors’ statement by administrators McTear Williams & Wood now reveals that the unpublished management accounts for the 11 months to 30 April 2023 showed a turnover of £14.7m and a loss of £1.3m.
The position quickly worsened when recent contracts worth £2.6m were further delayed and few new sales were won. “This had a significant impact on the Company’s profitability and its cashflows becoming unworkable,” the administrator reports.
15 September 2023