Tue, 14 Nov 2023 | ADMINISTRATION
Kagool, a data, analytics and ERP firm based in Coventry, has fallen into administration after announcing last month that it would seek to review its restructuring options. In October, the company stated that it had experienced “a significant decline” in IT investments in both the UK and EU over the past year.
As a result, the company stated that its UK operations were “no longer viable in their current form” and that it would explore restructuring options. UHY Hacker Young has now been appointed as administrators to the company’s UK operations.
Kagool, which was founded in 2004, is headquartered at Friars House in Coventry, with another UK office in London. The company also has a significant international operation, with offices in Chicago, Singapore, Philippines, Kuala Lumpur, Mexico, Pune, Hyderabad, Dubai and Qatar.
Last month, the company stated that any restructuring efforts would only impact the firm’s UK operations and that its international business would be unaffected.
In a statement, the company said: “In tandem, as our UK revenues have shrunk, our non-UK revenues have grown considerably. As a result, the majority of UK employees today actually work on non-UK projects for other Kagool global group companies (eg Kagool UAE/USA) where IT investments continue to grow sharply in these regions.”
“In addition since moving our global R&D centres to the UAE 12 months ago, we have seen accelerated product innovation through significant government investment and support way beyond what could be achieved from developing within the UK. These factors combined are driving a shift of intellectual capital away from the UK into regions such as the UAE.”
The company added that UK employees were being “remapped and relocated to other Kagool companies" to continue providing support for international customers and said it expected to retain “most if not all headcount affected by any restructuring”.
In its accounts at Companies House for the year ending July 31 2022, Kagool had total assets of slightly over £6 million, with net liabilities amounting to £1.4 million.
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