01392 474303

Contact David Kirk by clicking on his name to email him a question or call 01392 474303

Recruitment

Recruitment Insolvency

These businesses have high staff costs and irregular income (fees for placing staff) and often substantial payrolls if they supply agency staff on low margins. They can swing from very profitable to loss making very quickly. They also tend to rely on key staff who develop a strong bond with their clients which is a risk if they then leave.

The latter supplying agency staff can eat up cash flow as wages need to be paid often weekly, but customers want to pay monthly and often late. If these businesses get into PAYE arrears (as they are responsible for this deduction) the finances can spiral out of control very quickly.

One large customer bad debt can spell disaster where you have employed agency staff for a customer as your margin maybe only 20% or less.

If you own this type of business and want to carry on the solution maybe a pre-pack Administration to keep the trading name and have as little customer disruption as possible. If the brand name is not so important and perhaps staff are owed arrears of wages, holiday, notice and redundancy a better option maybe liquidation.

Email

david@kirks.co.uk

Phone

0808 1961496

Offices

Across the South West, London & Wales

We have just worked with Kirks to complete the closure of our company. Everything went smoothly and professionally. I would recommend this firm and the staff who were very very helpful and quickly finalised everything. Thank you Kirks.
Carol Hill
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