Mon, 22 Jul 2024 | ADMINISTRATION
Axis Studios, a VFX and animation house with operations in Glasgow and Bristol, has fallen into administration. The company has provided VFX and animation for major feature films and TV programmes, as well as working in the games industry.
Despite seeing an increase in demand during the COVID-19 pandemic, the company has subsequently suffered from a decline in projects, as well as increasing labour costs, which resulted in cashflow issues.
Although directors had sought to explore other options for the business, it was ultimately decided that it should be placed into administration. Alistair McAlinden and Geoff Jacobs of Interpath Advisory were subsequently appointed as joint administrators to Axis Productions Limited and Axis VFX Limited, both trading as Axis Studios, on July 15.
Following the appointment of the joint administrators, 162 staff have been made redundant, with four staff retained to assist in the orderly wind down of the business. Production has ceased on all projects and administrators are now seeking operators to continue with live projects.
Joint administrator and Head of Interpath Advisory in Scotland Alistair McAlinden said: “It is a great shame to see a creative business in Scotland close its doors. Axis has been a studio of choice for key production companies and has produced content for household names such as the BBC, Netflix and Blizzard Entertainment. The Company experienced a high demand for its services during COVID as animation and visual effects for TV, film and videogames skyrocketed.”
“Unfortunately, however, Axis has more recently been impacted by a decline in customer projects, as well as increases in labour costs which have resulted in severe cash flow problems. The directors worked tirelessly to explore alternative solutions, but ultimately had to take the difficult decision to seek the appointment of administrators.”
Fellow joint administrator Geoff Jacobs urged any parties interested in Axis’ live projects to contact them immediately.
In the company’s accounts for the year to November 30 2022, it reported revenue of £23.7 million, down from £27.3 million a year earlier, but saw its operating profit increase from £197,000 to £382,000. At the time, its non-current assets were valued at £4.7 million and current assets at £5.5 million, with total equity standing at £3.07 million.
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