Fri, 20 Jun 2025 | ADMINISTRATION
A Bedford-headquartered civil engineering firm has fallen into administration after encountering significant cashflow issues. LF Solutions Limited specialised in all aspects of ground works, formwork and civil engineering.
While it was headquartered in Bedford, the company was registered in Northampton and generally provided services between the M11 and M4 corridor. The company also operated a labour supply arm and had a fleet of plant and machinery.
In accounts for the year to February 28 2024, the company reported revenue of £20.3 million, down from around £23.3 million a year earlier. Operating profit, meanwhile, stood at £323,410, down from approximately £370,000 the previous year. Directors stated that the drop in turnover was “mainly due to general economic conditions affecting the industry” and that the decrease in gross margin was “in line with expectations.”
However, the company ran into trouble as a result of cash flow issues and difficulty paying creditors. As a result, Ninos Koumettou and Amie Johnson of Begbies Traynor were appointed as joint administrators of the company on June 17.
In a statement, the joint administrators said that the company had struggled paying creditor liabilities "due to difficulties encountered in obtaining payment from customers on contracts, the economic climate generally, together with increased trading costs".
The joint administrators continued that the company’s position was further exacerbated by issues obtaining credit from suppliers and that it ultimately "became clear that the business could not continue in its present position".
The statement added: "Every option available to the company has been explored but the decision was taken for the company to enter administration, as it was considered that any ultimate sale of business that could be secured by the duly appointed administrators, will achieve a greater return for creditors generally."
At the time of its 2024 accounts, the company’s fixed assets were valued at around £665,000 and current assets at around £7.2 million, with net assets of £2.2 million.
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