One80 advised a High Wycombe-based heating and plumbing business on a Company Voluntary Arrangement (CVA) in a move that secured seven jobs.

The challenge

With headquarters in High Wycombe, our client provided installation systems for new build residential properties for local, regional and national builders and developers, servicing the commercial sector nationwide. The company was established in 2006 and achieved a turnover of £1.8m in the year to March 2017.

Despite the growing number of customers seeking the specialist services of businesses across the plumbing and heating industry, small-to-medium sized enterprises face real pressures from escalating business rates and general market uncertainty. These factors negatively contributed to the company’s position, leading the business to seek the expertise of our One80 specialists.

The solution

We quickly reviewed the situation and careful consideration was taken when deciding on the best course of action for the company. After collaboration with all parties involved it was decided that a Company Voluntary Arrangement (CVA) would ultimately provide the best outcome in line with the directors desires, as it was acknowledged that the company was committed to preserving its business operations.

In order for the liquidators to begin the formal CVA process, One80 experts had to firstly obtain the unanimous agreement from creditors. We carefully constructed our proposal ensuring there was an emphasis on our explanation surrounding the implications for stakeholders. We also provided an in-depth overview of what a CVA process entails and informed them of how a CVA procedure works to ensure that there was a common understanding between creditors. As such, we were successful in achieving the support from the majority of stakeholders.

By initiating CVA proceedings, it supported the company’s management team and allowed operations to continue whilst employees were able to complete all ongoing contracts and take on new work assignments.