Jobs secured as Quantuma advises BCF Heating & Plumbing
BCF Heating and Plumbing has agreed upon a Company Voluntary Arrangement, securing the jobs of its entire workforce. The deal, which will see heating and plumbing contractor pay back its creditors in full over the course of a 13 month period, was advised upon by corporate rescue consultancy Quantuma.
With headquarters in High Wycombe, BCF Heating & Plumbing provides installed systems for new build residential properties for local, regional and national builders and developers, servicing the commercial sector nationwide. The company was established in 2006, and achieved a turnover of £1.8 million in the year to March 2017. However, adverse trading conditions, including the increasing cost of importing parts from overseas, saw the firm put under mounting pressure by debtors in 2018.
Now, the group has struck on a Company Voluntary Arrangement (CVA), allowing the company to continue to employ seven employees. This will enable the business to complete all on-going contracts and continue to work on new assignments, while the contractor will pay back its creditors in full over the course of 13 months. CVAs have become a popular method of staving off administration in recent times, as they allow embattled companies to avoid administration while offloading underperforming stores and reducing rent costs.
Business advisory firm Quantuma advised BCF on the CVA. Partners Nick Simmonds and Chris Newell were appointed from Quantuma to advise the management team in formulating the proposals, which were approved 23rd October 2018.
Commenting on the CVA, Nick Simmonds remarked, “Despite the growing number of customers seeking the specialist services of businesses across the plumbing and heating industry, small-to-medium sized enterprises are facing real pressures from escalating business rates and general market uncertainty. These factors contributed to BCF’s position, leading the business to seek our expertise. By entering a CVA, the company’s entire workforce has been preserved, operations can continue, and creditors will be paid back in full - a good outcome for all concerned.”
Chris Newell meanwhile highlighted the importance of seeking help if a business is struggling, adding, “We continue to advise small-to-medium enterprises who find themselves facing insurmountable challenges as a result of market unsteadiness. The first step businesses should take when faced with difficult circumstances is to consult the expertise of restructuring specialists. As a result of our swift consultation period and careful negotiations, we were able to retain all employee posts at BCF, providing security for both the staff and customers of the company.”
Difficult trading conditions
Quantuma has seen a busy 2018, as a number of previously up-and-coming UK businesses have floundered amid difficult trading conditions. The business advisory firm specialises in corporate recovery and administration procedures, with offices in London, Southampton, Bristol, Marlow, Watford, Brighton, Birmingham, Manchester, Ringwood and Weymouth. Thanks to growing international demand, in July 2018, the firm also opened two international offices in Cyprus.
Earlier in the year, the firm was tapped to oversee the administration of British-based mobile phone maker WileyFox. The beleaguered technology firm entered restructuring procedures following a catastrophic 2017, which saw numerous projects either delayed or jettisoned. Elsewhere the consultancy recently helped preserve a number of jobs in London after Chelsea Apps Factory fell into administration earlier in the summer. In an uncommon turn of events amid a booming digital consulting industry, the firm succumbed to heightened sectorial competition; however it was quickly sold by Quantuma administrators, saving the firm’s value and some 42 remaining jobs.
