Simon Chandler, partner, and Scott Bevan, director, of Mazars have been appointed as joint administrators of Key Forensic Services Ltd, which is a major supplier to police forces and has significant financial problems
The company currently employs 261 staff over its three trading sites: Coventry, Warrington and Norwich. Turnover for the year to 31 March 2017 was £15.3m.
An agreement has been reached between the key stakeholders of the company to ensure a period of stability in the business, designed to minimise the impact on the criminal justice system and ongoing cases, and help to protect evidence in live criminal cases.
The company is continuing to trade and no redundancies have been made. The joint administrators are in discussions with interested parties and seeking further offers for the business and assets of the company to enable a sale of the business as a going concern.
Simon Chandler, Mazars head of restructuring services and joint administrator, said: ‘The company had an underlying profitable business but suffered extreme pressure on its working capital whilst developing new markets and opportunities.
The working capital issues have ultimately resulted in the need to appoint joint administrators despite the efforts of senior management to obtain further funding or a purchaser.
‘A sale would preserve jobs and provide the best outcome for stakeholders and creditors.’
Report by Pat Sweet
