SFP Corporate Solutions were approached by a company of Tree Surgeons who were experiencing significant cash flow difficulties and required a quick company check of their business and assistance to resolve their difficulties. The company had a turnover some of £8m and whilst previously profitable, had experienced a period of losses coupled with a tightening of the bank’s lending facility. Accordingly, the company was suffering acute cash flow problems resulting in a backlog of HMRC debt.
SFP Corporate Solutions liaised with management and reviewed the business and up to date management accounts. SFP Corporate Solutions also assisted with and reviewed cash flow forecasts in order to gauge the level of cash availability so that proposals could be placed before HMRC in respect of a time to pay arrangement. Details were supplied to HMRC giving details of the business, the reasons for its current difficulties, how those difficulties were to be resolved and outlining the number of employees whose jobs would be at risk if the company ceased trading.
HMRC accepted the recommendations of SFP Corporate Solutions, a time to pay arrangement was put in place and the company was able to emerge from its difficulties.