Roofing firm Rock International Holdings has gone into administration, four years after managers bought the company, CN has learned.
Administrators from KPMG were appointed to the Bedfordshire company, which had 50 staff according to its most recent accounts for the year ended October 2010.
Credit firm Top Service said it withdrew the credit limit on Rock International Holdings after a number of queries and a delay to the posting of its 2011 accounts.
A spokesman for KPMG confirmed that Jane Moriarty and Allan Graham were appointed administrators to Rock International Ltd on Thursday.
According to the 2010 accounts of parent company Rock Group Holdings, the company’s turnover fell to £11m from £20m the year before.
The parent group made a £3.8m loss in the 2010 financial year, including a £1m trading loss.
It said the drop in sales came after the “adverse economic environment and ensuing contraction in large-scale new-build commercial projects”.
But Rock said it had secured a £17m revenue target to May 2011, while the outlook for FY12 was “extremely encouraging with secured turnover already of £12m (or 47 per cent) of the £26m budget”.
It added that “all of FY12 turnover is visible, tendered and factored”.
Directors conducted a management buy-out in 2008 followed by a capital restructuring in 2010 and a debt for equity swap in 2011.
Investec transferred £2m of mezzanine debt (lower priority debt) to NBGI Private Equity in 2009.
Bank debt was transferred in 2010, followed by another financial restructuring which saw senior and mezzanine debt and bonds converted to equity.
After posting net debt of £14.8m, the group said it had “no debt service obligations”.
Its strategy was aimed at extending its waterproofing services to clients, but said this expansion was “tempered by the sheer volume of mastic asphalt opportunities”.
The diversification strategy was reportedly picking up by the end of 2009, but the company said that while orders were strong, the firm had a “poor year financially”.