Nottingham-headquartered Light Source Design Limited has entered administration.
Founded 20 years ago, the company provides installation services for Fibre to the Premises infrastructures for a number of blue chip communication companies including Openreach, Virgin Media, UPP and KCOMM.
Turnover had grown to £48.5m in the latest finalised accounts period, with the company employing 220 people as of the appointment of Tom Straw and Chris Lewis of RSM UK Restructuring Advisory LLP as joint administrators on 31 January 2023.
The business was impacted by delays in payment from customers and challenges in converting work in progress. The position further deteriorated due to a large bad debt, adverse customer credit terms and a reduction in customer budget spend, leading to further cash flow pressures which meant that the company was unable to meet its liabilities as they fell due, resulting in the appointment of administrators.
Trading has been suspended whilst the administrators are seeking to sell the business and its assets in order to try and protect jobs and achieve an orderly handover of contracts to maximise realisations for the benefit of creditors.
Tom Straw, partner at RSM UK and joint administrator, said: “Cash flow issues meant that despite working with stakeholders to look to find an alternative solution, the company became the subject of a winding-up petition, culminating in the appointment of administrators. The administrators are exploring all options including a sale of the business in an accelerated timeframe.”
