Norbain enters administration
Wednesday, 4 July 2012 | Admin
Norbain traded with pre-tax losses for four out of the last five years
Norbain, one of the largest and longest trading security product distributors in the UK has entered into administration under a pre pack agreement, as a result of the pre pack they will continue to trade but with a debt free clean slate?
Online Security Products are a debt free company on a secure footing, Phil Wilkinson (MD) said, we prefer to trade without the risks of overdrafts, supplier debts and loans which ensures the companies future and a stable relationship with our suppliers.
Norbain Group has struggled with consecutive pre-tax losses for the past five years – interrupted only by its financial performance in the year ending 30th April 2010.*
In 2007 it lost nearly £11m, followed by £11.7m in 2008. The pre-tax loss in 2009 was £98.8m, though in 2010 a £114.3m profit was recorded on the balance sheet – owing to a £135m exceptional item contribution. However, in the last trading year recorded (2011), the Group again made a £2.1m loss – owing to interest payments of £3.1m.*
With the industry considering the potential ‘contagion’ effects of Norbain’s administration, Plimsoll’s analysis of Dedicated Micros Group reveals that DM made a pre-tax loss of almost £1.6m in the year to 30 June 2009 and £9.1m in the year to June 2011 (the last recorded figure to date). Plimsoll comments that DM also suffered a significant fall in sales in the latest year.*
Last week, Plimsoll warned that one in four companies in the UK security industry is making a loss, as economic conditions continue to take their toll. A new study reveals how many of these 272 loss making companies have simply had an isolated bad year and how many are burying their heads in the sand. Author David Pattison says: “More and more companies are making a loss for the first time in their history. Many can rightly claim to be victims of difficult trading conditions. A quick refocus on profitability would ensure this an isolated occurrence”*
*Source: security news desk