Wed, 16 Jul 2014 | ADMINISTRATION
A Yorkshire-based manufacturing company has been forced into administration after an accounting error was discovered in its books.
BCI Process, formerly Brewchem International, produces pipe work systems and steelwork structures for use in the food and beverage industries. The business employs around 20 full-time staff and a further 50 contractors, and the administrators have said they have secured a rescue deal to preserve all the jobs at the company, Insider Media reported.
The problems first began in 2012, when investment firm Hughes Armstrong Corporate Investment had to help BCI to pay its debt to HMRC. However, in February of this year, HMRC said the business owed it a further £300,000 and when an internal accountant left the company in March major problems were discovered with the books.
A review by an external accountancy firm found that BCI had actually made a loss of £233,000 in the nine months to 30 June 2013, contrary to the reported pre-tax profits of £155,000. Another loss of £233,000 in the nine months to 31 March 2014 was also uncovered.
Meadows Chartered Accountants’ investigation found that £1.1 million was due to HMRC, a figure BCI could not pay and so Leonard Curtis were called in as administrators. The restructuring firm achieved a pre-pack rescue deal with BCI Brewchem (Anglia), a business owned by Hughes Armstrong, to clear the debts and secure the company’s future.
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