Fri, 17 Mar 2023 | ADMINISTRATION
Administrators are seeking to secure the assets of a COVID-19 testing provider to maximise returns for creditors following the company’s collapse. Circular 1 Health Limited was founded in June 2020 amid the initial wave of the COVID-19 pandemic and capitalised on the “unprecedented demand” for testing to become one of the UK’s largest providers.
In its accounts from its founding on June 26 2020 to November 30 2021, Circular 1 Health Limited reported turnover of £35.4 million, a gross profit margin of 50 per cent and operating profits of £6.4 million.
Despite these strong results, the company acknowledged that its trading performance was “intrinsically linked to the ongoing coronavirus pandemic”. The directors added that, while they recognised that the pandemic “could come to an end in subsequent financial periods”, it was “already securing contracts that will diversify the company activities into areas such as wellbeing, training and the sustainable economy” and believed it was “in an excellent position to grow in the subsequent financial year and beyond”.
Reflecting this strategy, the company, which was based in Carlisle and had further operations in Manchester and Cumbria, had sought to expand away from COVID-19 testing over recent months. In December 2022, the firm opened a health hub in Barrow-in-Furness under the Me and My Health brand.
However, in January of this year, staff at the Me and My Health facility were informed that it would be unable to pay their salaries as a result of a deal with an investor in the business “changing”. Staff were also subsequently not paid in February.
The company has now appointed Gary Lee and Kenneth Pattullo of Begbies Traynor as joint administrators, citing a lack of new contracts and funding. Prior to the appointment of the administrators, the company employed 40 people across its operations.
Joint administrator Gary Lee commented: "The directors have worked closely with the company’s stakeholders and have explored all options to address the long-term viability of the business.”
"Unfortunately, new contracts and an injection of funding have not materialised and reluctantly, the directors have had no option but to place the company into administration. We are now taking steps to secure the company’s assets to maximise the outcome for creditors and staff and provide assistance to the employees in making claims.”
In the company’s accounts for the 17 months to November 30 2021, its fixed assets were valued at £2.3 million and current assets at £7.6 million. Net assets at the time amounted to £5.1 million.
One of the best ways to find properties below market price is to look at recent administrations.
Find businesses for sale here
Download our free guide: How to find and buy distressed businesses and assets.
Residential Care Home features 39 bedrooms is up for sale. The home had average occupancy of 83.9 per cent in the year to July 2022. Offers invited.
FREEHOLD
This is an oppurtunity to acquire a well regarded residential care home for adults with learning disabilities, due to the owners pending retirement.
FREEHOLD
Distributor of medical and trade consumables including syringes dressings PPE gloves and instruments to healthcare providers in the UK & Europe; it is now for sale.
21
|
Mar
|
Honey and gin maker set to appoint administrators but hopeful of business sale | ADMINISTRATION
The British Honey Company (BHC), an Oxfordshire-based produc...
21
|
Mar
|
Mergers and acquisitions firm Langcliffe International becomes employee-owned | MBO/MBI
Langcliffe International, a leading buy-side mergers & acqui...
21
|
Mar
|
Screwfix acquires appliance retailer out of administration | ADMINISTRATION
Trade retailer Screwfix, a subsidiary of Kingfisher group, h...
Sign up to receive our acquisition alert emails to get your FREE guide
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.