Report to Creditors Pursuant to Section 98 of the Insolvency Act 1986 121a
Insolvency Act 1986 Total Packing Services Limited A- Estimated Statement Of Affairs as at 31 March 2011 Assets not specifically pledged Book Value Notes Estimated to Realise Plant & Machinery 19,698 1 13,650 Surplus available to preferential creditors 13,650 Preferential Creditors Employees Preferential Claims 2 Nil Surplus available to unsecured creditors 13,650 Unsecured Creditors Trade Creditors 3 21,247 HM Revenue & Customs - PAYE/NIC 4 17,616 HM Revenue & Customs - VAT 4 21,299-60,162 Estimated deficiency as regards non-preferential creditors - 46,512 Issued and called up capital Ordinary Shareholders 720 720 TOTAL SURPLUS/(DEFICIENCY) - 47,232 Page 1 of 2
A Notes to the Statement of Affairs 1. A valuation of the Company s assets was carried out by Simon Woodhams of Asset Recovery & Insolvency Limited in accordance with the Royal Institution of Chartered Surveyors valuation procedures. 2. There are no preferential claims in this matter as all of the Company s employees have been transferred to a connected Company, Total Packing Sales Limited. 3. Creditors claims have been taken from the Company s records. No steps have been taken to agree these claims at this time. 4. The amounts due to HM Revenue & Customs in respect of PAYE, National Insurance and VAT have been taken from the Company s records and are subject to the submission of the final returns. Page 2 of 2
Peter Hall Total Packing Services Limited B - Company Creditors Key Name Address CH01 H M Revenue & Customs - VAT National Insolvency Unit, Debt Management and Banking, 3rd Floor NW, Liverpool, L74 21,298.91 4AA CH00 HM Revenue & Customs - PAYE Insolvency Claims Handling Unit, Room BP2032, Longbenton, Newcastle upon Tyne, 17,615.92 NE98 1ZZ CH02 HSBC Bank Plc 8 London Street, Basingstoke, Hampshire, RG21 7NU 7,835.90 CM00 Menzies LLP Heathrow Business Centre, 65 High Street, Egham, Surrey, TW20 9EY 4,515.03 CN00 Newey & Eyre c/o Grimshaw, Stewart, McAvoy & Regent Court, George Road, Edgbaston, Birmingham, B15 1NS 188.80 CT00 Total Packing Sales Limited 3,720.00 Unit 1 Newton Park, West Portway Industrial Estate, Andover, Hampshire, SP10 3LF CY00 Yell Limited c/o RSM Tenon Recovery Salisbury House, 31 Finsbury Circus, London, EC2M 5SQ 4,986.88 7 Entries Totalling 60,161.44 Page 1 of 1 IPS SQL Ver. 2010 28 March 2011 17:49
C - Shareholders Key Name Address Pref Ord Other Total HS00 Mr I Slater 9 Dove Close, Andover, Hampshire, SP10 5PB 9,720 280 0 10,000 HA00 Mr M Andrews 123 B Ock 87, Abingdon, Oxon, OX14 5DL 9,840 160 0 10,000 HM00 Mr Michael Miles 6 Russell Court, Maidenhead, Berkshire, SL6 7AP 9,720 279 0 9,999 HM01 Mr Nikolas Miles Longbottom Farm, Longbottom, Shipham, Somerset, BS25 1RW 0 1 0 1 4 Entries Totalling 30,000 Signature Page 1 of 1 IPS SQL Ver. 2010 28 March 2011 17:51
D - Statutory Information Company Number 02292040 Date of Incorporation 1 September 1998 Nature of Business Issued Share Capital Packaging design and production 720 ordinary 1 shares 29,280 Preference 1 Shares Directors Mr Michael Miles (279 Ordinary Shares) (9,720 Preference Shares) Registered Office Unit 1 Newton Park West Portway Ind Est Andover, Hampshire SP10 3LF Accountant Bankers Grant Sellers Chartered Accountants Bank Court, Manor Road Verwood, Dorset BH31 6DY HSBC Bank Plc 8 London Street Basingstoke, Hampshire, RG21 7NU Page 1 of 2 122a
D - Statutory Information (Cont d) Prior Professional relationships Neither Peter Hall or any members of his staff have had any prior material relationship with the Company or its directors within the past 3 years, or are aware of any conflict of interest that would impair his objectivity as Liquidator of the Company. Board Meeting A meeting of the board of directors was held on 9 March 2011. It was resolved that it had been proved to the satisfaction of the meeting that the Company was insolvent and that a meeting of members should be convened to place the Company into Creditors Voluntary Liquidation. Notices The directors decided to take steps to place the Company into Creditors Voluntary Liquidation on 9 March 2011 and notices to members and creditors were issued on 14 March 2011. Meeting of Members A meeting of the Company s shareholders was held at 11:00am on Thursday, 31 March 2011 and a special resolution was passed to place the Company into Creditors Voluntary Liquidation and an ordinary resolution to appoint Peter Hall of Unit 15E, 2 Venture Road, Science Park, Chilworth, Southampton, SO16 7NP as Liquidator. Professional fees It has been agreed by the director that fees for assisting in the preparation of the statement of affairs and assisting with placing the Company into liquidation will be charged on a time cost basis up to a maximum of 3,000 plus expenses and VAT, to be paid by the director. The sum of 3,000 plus VAT and expenses has been paid on account to date. Related party transactions The draft accounts for the year ending 31 December 2009 reveal that the Company provided services to Total Packing Sales Limited, a company of which Michael Miles is also director, amounting to 267,158. Rent of 60,000 has also been received by the Company from Total Packing Sales Limited. The amount of 38,145 was due from the Company to Total Packing Sales at the time of those accounts. Page 2 of 2 122a
E - Company History Total Packing Services Limited ( the Company ) was incorporated on 1 September 1988 with two directors, Mr Michael Miles and Mr Ian Slater. Both had been previously employed at a contract packing company trading as Boxall. Boxall was owned privately by a family and an offer was made to them by a third party to purchase the site that Boxall occupied. The offer was accepted and Boxall ceased trading. Subsequently Michael and Ian decided to set up the Company. Ian Slater s main role as director of the Company was to manage the accounts and all financial matters including banking and paying creditors. Michael Miles role as director was obtaining new contracts, production, design and overseeing of the business. The Company s principle business was to offer a contract packing service to its clients. This involved the design and packaging of client s products in preparation for point of sale. Initially the Company had a small client base, however due to a good service and reputation the client base grew substantially and attracted several blue chip companies, including Sony, Panasonic and Boots. In 2004, Ian Slater left the Company unexpectedly and it was subsequently found that that the Company had numerous and large unpaid debts. However it was decided by the director that the Company s current turnover was sufficient to enable the company to trade its self out of the situation. A new Company Secretary was appointed to take over the duties of Ian Slater and trading continued with Michael Miles now as sole Director. As Michael s expertise was mainly the day to day running of the production side of the company and not the financial side this situation fitted very well. Michael trusted and employed the Company Secretary to keep him up to speed with the day to day finances of the Company. However from 2008 the Company started to suffer losses as a result of losing contracts and also due to the economic down turn. In February 2010 the Company Secretary resigned and it was then discovered that the Company was in a serious financial situation. This only became apparent to the director at the time of the Company Secretary resigning. Through further investigation and despite the instructions set out in the job description to the Company Secretary at the time of appointment, it was found that key information had not been passed to Michael regarding the financial position of the Company. This had prevented vital decisions being made to resolve the problems. On 9 March 2011, the Company sought advice from Peter Hall of Unit 15E, 2 Venture road, Science Park, Chilworth a licensed Insolvency Practitioner and it was decided by the board that there was no option but to take the necessary steps to place the Company into Creditors Voluntary Liquidation. Michael Miles Director
F - Estimated Deficiency Account For the period from 1 January 2010 to 31 March 2011 Profit and Loss Account Balance at 1 January 2010 (96,157) Amounts written off for the purposes of the statement Plant & Machinery 6,048 (6,048) (102,205) ESTIMATED TRADING PROFIT FOR THE PERIOD 54,973 DEFICIENCY PER STATEMENT OF AFFAIRS (47,232) 127a
G -Extracts from Accounts for the period ended 31 December 2009 Period Ended 31 Dec 2009 31 Dec 2008 31 Dec 2007 Profit & Loss Turnover 267,158 382,434 426,388 Directors Remuneration 61,944 52,725 55,222 Taxation Nil Nil Nil Retained Profit (Loss) (68,569) (7,301) (17,218) Dividends Nil Nil Nil Profit (Loss) to reserves (68,569) (7,301) (17,218) Profit (Loss) b/f (27,588) (20,287) (3,069) Profit (Loss) c/f (96,157) (27,588) (20,287) Balance Sheet Fixed Assets 19,698 13,669 19,295 Current Assets 8,764 12,862 21,787 28,462 26,531 41,082 Current Liabilities 123,899 53,399 60,649 Long Term Liabilities Nil Nil Nil 123,899 53,399 60,649 Net Assets (95,437) (26,868) (19,567) 126a