Founded in 2009, Integrity is an IT solutions and consultancy business, delivering IT Solution packages to small businesses and larger organisations, and has more than 1,500 users.
Managing Director, Andrew Fisher, has been a client of Armstrong Watson since Integrity was founded in 2009. In 2015 he started thinking about retirement plans and engaged with us for specialist advice around his exit options.
The Company was significantly geared with indebtedness of over £4m between three banks, with all three having security over the Company’s assets. There was an inter-creditor agreement between the banks resulting in one of the lenders having priority over the others.
The senior secured lender had concerns regarding the Company’s viability and had moved the Company into its special situations unit and had instructed an insolvency practitioner with a view to them taking steps to place the Company into Administration.
Whilst it’s important to regularly look at your savings and investments, it’s also vital to take stock of your lending commitments too and the security in place to protect these should circumstances change. By either not taking the time to ensure adequate and appropriate cover is in place or seeking the wrong support, guidance and advice, this could prove to be a costly decision.
We were instructed by an existing client of Armstrong Watson within the agriculture sector who was experiencing cash flow issues. Our client was asset rich but had a liquidity issue having already extended its overdraft with its bank considerably to £700k from a previously agreed facility of £200k. The Company’s funding requirement was the result of several poor crops due to supply issues which had impacted upon profitability. The Company was in the process of pursuing a claim with its supplier.
Armstrong Watson has reviewed Facepunch Studios systems, transforming their accounting process and resulting in significant time savings for the company.
Douglas Russell has advised McGowan Miller Construction for over 8 years, providing recurring services for accounts, tax returns, payroll and financial planning.
Armstrong Watson were approached by a construction company who had encountered difficulties with their cash flow after having encountered a reduction in turnover coupled with encountering losses on a number of larger contracts. The underlying business was potentially sound however the cash flow difficulties had meant that historic liabilities were starting to become a challenge for the business.
With the assistance of Armstrong Watson, a major review of the company's operations was undertaken, which highlighted several matters: