www.pwc.co.uk/pacs

Joint administrators’ progress report from 6 March 2017 to 5 September 2017

Plant and Consumable Services Limited

(in administration)

High Court of Justice, Chancery Division, Leeds District Registry

Case no. 261 of 2017

25 September 2017

www.pwc.co.uk/pacs

Plant and Consumable Services Limited PwC Contents

Contents

Abbreviations and definitions 2

Key messages 3

Overview of what we’ve done to date 4

Progress since we last reported 5

Appendix A: Receipts and payments 9

Appendix B: Expenses 10

Appendix C: Remuneration update 11

Appendix D: Other information 24

2

The following table shows the abbreviations and insolvency terms that may be used in this report:

Abbreviation or definition Meaning

Administrators Anthony S Barrell and Toby S Underwood

Bank Clydesdale Bank plc

Company Plant and Consumable Services Limited

firm PricewaterhouseCoopers LLP

HMRC HM Revenue & Customs

IA86 Insolvency Act 1986

IF Invoice financing

IR16 Insolvency (England and Wales) Rules 2016

preferential creditors Claims for unpaid wages earned in the four months before the

insolvency up to £800, holiday pay and unpaid pension contributions

in certain circumstances

prescribed part The amount set aside for unsecured creditors from floating charge

funds in accordance with section 176A IA86 and the Insolvency Act

1986 (Prescribed Part) Order 2003

proposals The joint administrators’ proposals for achieving the purpose of

administration dated 28 April 2017

R&P Receipts and Payments account in Appendix A

RPS Redundancy Payments Service, an executive agency sponsored by the

Department for Business, Energy & Industrial Strategy, which

authorises and pays the statutory claims of employees of insolvent

companies under the Employment Rights Act 1996

ROT claims Claims to retention of title over goods supplied to the Company but not

paid for before the administrators’ appointment

Sch.B1 IA86 Schedule B1 to the Insolvency Act 1986

secured creditors Creditors with security in respect of their debt, in accordance with

section 248 IA86

TUPE Transfer of Undertakings (Protection of Employment) Regulations

2006

unsecured creditors Creditors who are neither secured nor preferential

Abbreviations and definitions

3

Why we have sent you this report We’re writing to update you on the progress of the administration of Plant and Consumable Services Limited in the six months since our appointment.

How much creditors may receive The following table summarises the possible outcome for creditors*, based on present information.

Class of creditor

Current estimate

(p in £)

Secured creditor Uncertain

Preferential creditors Nil

Unsecured creditors Nil

*Please note this guidance on dividends is only an indication and should not be used as the main basis of any bad debt provision or debt

trading.

We do not believe the secured creditor will be fully repaid its lending of £7.7 million out of its security over the Company’s assets.

We do not believe preferential creditors will receive any dividend.

Based on what we currently know we do not think unsecured creditors will receive any dividend.

What you need to do This report is for your information and you do not need to do anything.

Key messages

4

As detailed in our proposals when we were appointed, the position was as follows:

The Company’s principal activity was the hiring out of non-operated plant and sale of engineering consumables.

In early February 2017 the Company requested to increase its IF facility limit with the Bank by £0.5m to £8.0m.

The Bank asked the Company for financial information to demonstrate the requirement and provide an explanation of the underlying reasons for the increase.

On 27 February 2017 the Bank received correspondence from the Company advising that it had identified an accounting irregularity leading to a material reduction in its trade debtors. Consequently, the Company was struggling to pay its debts as they fell due and required ongoing support in order to be able to continue to trade in the short term.

The Bank contacted PwC for advice and a meeting was scheduled between the Bank, the Company, PwC and the Company’s accountants on 2 March 2017. This meeting was convened to understand the nature of the accounting irregularity, the impact upon the Bank’s security position and the overall current financial position of the Company. During the course of the meeting, the Company again advised that it was unable to continue to trade without the support of the Bank and required significant additional funding.

Given the position above, the Bank took steps to enforce its security as qualifying floating charge holder and the Company entered Administration on 6 March 2017. After an initial review, we decided the most appropriate strategy was to cease to trade the majority of business with a staged wind-down to maximise realisations and reduce contractual claims for the benefit of all creditors.

Immediately on our appointment, we secured and took control of the Company’s assets, which included:

Stock and chattel assets

The debtors ledger

Customer contracts

Interests in leasehold properties

We remain in office mainly to finalise the collection of the debtors ledger against which the Bank holds specific security and to fulfil the administrators statutory responsibilities.

Overview of what we’ve done to date

5

Company Staff On appointment the Company had 68 employees, with eight remaining as at the time of the proposals as detailed below. 7 of these employees were subsequently transferred to a new employer under TUPE on 28 April 2017. The final remaining employee was made redundant on 31 July 2017.

Realisation of business and assets Stock and other assets

The Company’s stock holding on appointment was estimated at approximately £900k and comprised a wide range of engineering consumables. We explored a disposal of some, or all, of the stock to the Company’s competitors and key customers but received limited interest. Although some assets were realised by private treaty, we identified the most appropriate realisation strategy was to clear the Company’s premises of the remaining stock during the week commencing 9 April 2017 and dispose via auction.

All of the stock has now been realised for a total value of £164,897 before costs as shown in R&P at Appendix A.

We have also realised separately the following assets via private treaty sales:

Fixtures & Fittings £8,800

Motor vehicles £5,800

IT Equipment £1,092

Debtors

The Bank financed the Company’s debtor ledger via the IF Facility and on the administrators’ appointment had outstanding advanced funds of approximately £6.9m.

Immediately prior to our appointment, the Bank believed the Company’s debtors ledger totalled approximately £8.4m; however, due to the accounting irregularity referred to previously, the administrators reviewed the debtors ledger and estimated that the actual outstanding balance on appointment was £2.9m.

Please note that this is based upon present information and may change as further information becomes available.

We commenced a collection process for the debtors ledger and have corresponded with all debtors either by via telephone or in writing.

Collections to date in respect of the ledger total £2.1m. The cash receipts have been received directly into the Company’s pre-appointment IF facility bank account held with the Bank and are therefore not reflected on the R&P.

Customer contracts

The Company held a number of contracts with its key customers. These included Siemens plc (“Siemens”), for which the Company had a number of employees wholly assigned to the contract and located at a Siemens location in Newcastle. An agreement was eventually reached for sale of this contract, which resulted in the 7 members of staff transferring to Siemens under TUPE, and sale consideration of £37,500 being received. Prior to the completion of this sale, Siemens provided £46,589.53 to meet the ongoing salary and administration costs of these employees (see “Contribution from Debtors” in Appendix A).

Progress since we last reported

6

Work in Progress

The Company has received a payment of £10,000 in respect of work in progress.

Leasehold premises

At the date of our appointment, the Company held leasehold interests in four premises: its head office, warehouse, and additional storage facilities in Castle Donington, and a regional office/warehouse in Thornaby. The Company vacated all of these premises and has no further interest in the leases. Informal surrenders of the leases have therefore been offered to the respective landlords. The landlord of the warehouse (Unit 9B Warke Flatt, Willow Farm Business Park, Castle Donington, Derbyshire, DE74 2UB) accepted an informal surrender on 13 April 2017.

The landlord of the head office (Unit 4, Boundary Court, Willow Farm Business Court, Castle Donnington, DE74 2UD) accepted the Company’s informal surrender on 27 March 2017.

The remaining two leases are yet to be surrendered. We have informed the Landlords of our vacation and attempted to surrender as we have no interest in the lease. Any rent due post vacation will be classed as an unsecured claim. If surrender cannot be obtained this will not delay bringing the administration to an end.

Other matters Pre appointment VAT and Tax Investigations

Shortly after appointment we liaised with our corporation tax and VAT teams in order to investigate if there were any potential recoveries available. Although there was scope for a potential recovery it was not of benefit to the administration to pursue them, as the cost involved was not proportionate to the chance of success in a recovery and in any event it was likely that crown set off would apply.

Post appointment claims from former employees

Permission has been granted post appointment for certain employees to pursue claims at an employment tribunal in relation to their redundancy. If successful this will increase their unsecured claims, and not be payable as an expense of the administration. As there is currently no prospect of dividend to any class of creditor this will not affect the outcome of the case.

Utilities

We are continuing to liaise with the relevant utility suppliers of the properties with a view to settling any liability relating to the Company’s occupation during the course of the administration and hope this will be concluded shortly.

Connected party transactions Two sales to connected parties have occurred since appointment as detailed in the table below.

Date of Transaction

Asset details Consideration Connected party Valuation

18 April 2017 Mobile Phone £240 including VAT

Mark Evans (Director)

None

27 March 2017 Mobile Phone £200 including VAT

Chris Eccleshall (Director)

None

Approval of our proposals We issued to creditors our proposals for achieving the purpose of administration dated 28 April 2017.

7

The proposals indicated that we believed the Company did not have enough assets to pay a dividend to unsecured creditors even from the prescribed part.

This meant that we did not have to seek a decision from creditors to approve our proposals. As creditors did not request a decision to be sought our proposals were treated as approved on 10 May 2017.

Investigations and actions The administrators submitted their report to the Department for Business, Energy & Industrial Strategy on the directors’ conduct on 26 May 2017. This report is required by statute and does not necessarily suggest any misconduct on the part of the directors. As per our duty as administrators we will assist with any follow up work if required.

Furthermore since the issue of our proposals we have been made aware of other transactions that we are investigating. We will update creditors on the outcome of these when we can.

Our receipts and payments account We set out in Appendix A an account of our receipts and payments in the administration from 6 March 2017 to 5 September 2017.

Our expenses We set out in Appendix B a statement of the expenses we’ve incurred to the date covered by this report and an estimate of our future expenses. As the administration is coming to a conclusion we are hopeful that some of the provisions for expenses such as utility costs, will be released shortly as closing costs are provided.

The statement excludes any potential tax liabilities that we may need to pay as an administration expense in due course because amounts due will depend on the position at the end of the tax accounting period.

Our fees We set out in Appendix C an update on our remuneration which covers our fees, disbursements and other related matters in this case. Creditors will be aware that we issued a remuneration reported dated 4 July 2017 providing a fee estimate for the administration. The fee proposal was approved by the Bank on 26 July 2017.

Creditors’ rights Creditors have the right to ask for more information within 21 days of receiving this report as set out in Rule 18.9 IR16. Any request must be in writing. Creditors can also challenge fees and expenses within eight weeks of receiving this report as set out in Rule 18.34. This information can also be found in the guide to fees at:

https://www.icaew.com/-/media/corporate/files/technical/insolvency/creditors-guides/2017/administration-creditor-fee-guide-6-april-2017.ashx?la=en

You can also get a copy free of charge by telephoning Thomas Wadey on 0113 289 4322.

What we still need to do We will remain in office for the following reasons:

1. Finalise collection of debtors ledger 2. Finalise remaining costs of administration 3. Distribute any funds to the Bank as appropriate 4. Finalise tax affairs and clearance 5. Finalise remaining statutory tasks 6. Apply for dissolution

8

Next steps We are currently considering the best strategy for ending the administration, taking into account the cost, tax and statutory implications. It is likely this will be by dissolution. We’ll provide an update on this in our next report.

We expect to send our next report to creditors at the end of the administration or in about six months, whichever is the sooner.

If you’ve got any questions, please get in touch with Thomas Wadey on 0113 289 4322.

Yours faithfully For and on behalf of Plant and Consumable Services Limited

Anthony S Barrell Joint administrator

Anthony Barrell and Toby Underwood have been appointed as joint administrators of Plant and Consumable Services Limited to manage its affairs, business and property as its agents without personal liability. Both are licensed in the United Kingdom to act as an Insolvency Practitioner by the Institute of Chartered Accountants in England and Wales.

The joint administrators are bound by the Insolvency Code of Ethics which can be found at: https://www.gov.uk/government/publications/insolvency-practitioner-code-of-ethics

The joint administrators are Data Controllers of personal data as defined by the Data Protection Act 1998. PricewaterhouseCoopers LLP will act as Data Processor on their instructions. Personal data will be kept secure and processed only for matters relating to the administration.

9

Statement of

Affairs

6 March 2017 to 5

September 2017

£ Receipts £

Sale of Contract 37,500.00

19,039.00 Sale of Fixtures & Fittings 8,800.00

186,095.00 Sale of Stock 164,896.66

Sale of WIP 10,000.00

5,000.00 Sale of Motor Vehicles 5,800.00

3,247.00 Sale of IT Equipment 1,091.67

Pre-appointment Insurance Refund 3,010.90

3,757.00 Cash at bank -

Petty cash in hand 1,395.16

Sundry Debts & Refunds 356.50

Contribution from Debtors* 46,589.53

Bank Interest Gross 31.64

Funding from Chargeholder for

Administrators Fees** 300,000.00

10,928.00 Warehouse Plant*** -

6,309.00 Computer Software**** -

Total 579,472.06

Payments

Rents (12,682.01)

Utilities & Rates (3,421.61)

Insurance (7,576.64)

Repairs and Maintenance (151.15)

Office Costs (586.30)

Storage Costs (9,019.87)

Auction Fees (18,213.60)

Valuation fees (8,333.46)

Legal Fees (10,615.00)

Administrators Fees (250,000.00)

Statutory Advertising (73.00)

Bank Charges (51.76)

Employee Wages (74,236.35)

PAYE/NIC and Pension Deductions (29,450.16)

Employee Expenses (18,871.97)

Payroll Services (1,030.00)

Total (444,312.88)

VAT Control Account (50,735.20)

Total Cash at bank 84,423.98

Funds held in an interest bearing account

* Siemens provided funds to meet the costs of 7 employees (see Customer Contracts)

**** There was no realisable value for the Company's computer software

** the Secured creditor transferred £300,000 from debtors ledger receipts received

directly into the pre-appointment IF facility account in oder to settle an element of the

administrators fee based on there being insufficient floating charge realisations

*** what we believe the directors meant as Warehouse plant has been included as

Fixtures & Fittings and Motor Vehicles

Appendix A: Receipts and payments

10

The following table provides details of our expenses. Expenses are amounts properly payable by us as administrators from the estate and includes our fees, but excludes distributions to creditors. The table also excludes any potential tax liabilities that we may need to pay as an administration expense because amounts becoming due will depend on the position at the end of the tax accounting period.

The table should be read in conjunction with the receipts and payments account at Appendix A, which shows expenses actually paid during the period and the total paid to date.

Incurred in

the period

under review

£

Estimated

future £

Anticipated

total £

Initial

estimate £

Variance

£

Agents’ fees

and

disbursements

26,547 0 26,547 27,288 (741)

Employee

Wages and

salaries

74,236 0 74,236 76,082 (1,846)

Other payroll

costs

30,480 0 30,480 28,996 1,484

Employee

expenses

18,872 0 18,872 18,187 685

Bank charges 52 158 210 210 0

Insurance 7,577 1,134 8,711 1,618 7,093

Repairs and

maintenance

151 0 151 151 0

Legal fees and

expenses

12,500 1,500 14,000 13,055 945

Office holders

fees

488,668 32,200 520,968 484,821 36,047

Office holders’

disbursements

4,062 1,015 5,077 3,902 1,175

Statutory

advertising

73 0 73 73 0

Storage costs 9,020 3,930 12,950 12,950 0

Rent 12,682 0 12,682 8,052 4,630

Utilities 3,422 2,578 6,000 6,000 0

Office costs 586 0 586 586 0

Total 688,928 42,515 731,443 681,971 49,472

Our expenses have exceeded the estimate provided to all creditors before the basis of our fees was fixed. As discussed in our remuneration update at Appendix C we will not be looking to draw the total of our time costs. Insurance costs were incorrectly stated in the remuneration report, which is why costs are higher than the initial estimate. We are still waiting to hear from some utility suppliers in relation to administration expenses, however we are confident that these should come in under budget.

Appendix B: Expenses

11

Our fees were approved on a time costs basis by the secured creditor. To 5 September 2017 we have drawn fees of £250,000 plus VAT in line with the approval given, as shown on the enclosed R&P at Appendix A.

The time cost charges incurred in the period covered by this report are £488,668.

Although our time costs will exceed our initial estimate of £484,871, as approved by the secured creditor as fee approving body, we are not intending to draw fees over the initial estimate, and therefore will are not seeking approval for an increase. Any future fee discussions, approval and payment in excess of the £250,000 paid to date will be subject to the consent of the Bank.

We set out later in this Appendix details of our work to date, anticipated future work, disbursements, subcontracted work and payments to associates.

Appendix C: Remuneration update

12

Our hours and average rates

Plant and Consumable Services Limited - in administration

Analysis of time costs for the period from 6 Mar 2017 to 5 Sep 2017

     Aspect of assignment Partner Director

Senior

Manager Manager

Senior

Associate Associate Secretarial Total hours Time cost

Average hourly

rate

£ £

Strategy & Planning 1.00 - 3.00 25.85 38.75 36.15 - 104.75 27,080.25 258.52

Secured creditors - - - 34.35 - - - 34.35 11,867.25 345.48

Assets - 32.50 0.30 395.10 192.00 38.65 - 658.55 208,545.50 316.67

Investigations - 4.00 7.75 21.25 12.00 4.30 - 49.30 17,062.50 346.10

Creditors - 9.50 1.15 3.95 19.25 59.70 10.30 103.85 22,339.00 215.11

Accounting and treasury - - 0.05 15.80 20.05 49.45 - 85.35 18,186.80 213.08

Statutory and compliance 13.50 31.00 40.80 42.10 102.70 44.15 44.70 318.95 91,708.85 287.53

Tax & VAT 0.50 1.00 8.20 18.56 22.25 5.50 9.85 65.86 22,656.15 344.00

Employees & pensions - 6.40 - 80.25 140.20 14.15 - 241.00 69,221.30 287.23

Total for the period 15.0 84.4 61.3 637.2 547.2 252.1 64.9 1,661.96 488,667.60 294.03

13

Variance

Our time costs are slightly in excess of our initial estimate per the Remuneration Report. Although currently we are still under on total hours spent on the case the average hourly rate is above what we initially expected. Because of this the overall time costs are over budget. Time spent securing assets is above our initial estimate as more time has been spent realising book debts in order to maximise recovery for the bank. Tax & VAT time is above budget due to discussions around potential pre-appointment recoveries, as detailed earlier in this report. There were also questions raised internally around exported assets and other post-appointment invoices. We also kept on Company employees to assist the administrators for longer that we initially predicted, and have also since received claims against the Company by former employees, which is why costs are higher in this category of work.

Our time charging policy and hourly rates We and our team charge our time for the work we need to do in the administration. We delegate tasks to suitable grades of staff, taking into account their experience and any specialist knowledge that is needed and we supervise them properly to maximise the cost effectiveness of the work done. Anything complex or important matters of exceptional responsibility are handled by our senior staff or us.

     Aspect of assignment Total hours Time cost

Average hourly

rate

Estimated

Total hours

Estimated

Time cost

Estimated

Average

hourly rate

Variance in

Total hours

Variance in

Time cost

Variance in

hourly rate

£ £ £ £ £ £

Strategy & Planning 104.75 27,080.25 258.52 150.00 32,100.00 214.00 45.25 5,019.75 (44.52)

Secured creditors 34.35 11,867.25 345.48 43.00 14,835.00 345.00 8.65 2,967.75 (0.48)

Assets (combined with book debts) 658.55 208,545.50 316.67 655.00 202,395.00 314.50 (3.55) (6,150.50) (2.17)

Investigations 49.30 17,062.50 346.10 70.00 16,310.00 233.00 20.70 (752.50) (113.10)

Creditors 103.85 22,339.00 215.11 113.00 22,261.00 197.00 9.15 (78.00) (18.11)

Accounting and treasury 85.35 18,186.80 213.08 90.00 18,810.00 209.00 4.65 623.20 (4.08)

Statutory and compliance 318.95 91,708.85 287.53 360.00 93,240.00 259.00 41.05 1,531.15 (28.53)

Tax & VAT 65.86 22,656.15 344.00 40.00 16,360.00 409.00 (25.86) (6,296.15) 65.00

Employees & pensions 241.00 69,221.30 287.23 220.00 62,260.00 283.00 (21.00) (6,961.30) (4.23)

Closure procedures - - - 30.00 6,300.00 210.00 30.00 6,300.00 210.00

Total for the period 1,661.96 488,667.60 294.03 1,771.00 484,871.00 273.78 109.04 (3,796.60) (34.82)

14

All of our staff who work on the administration (including our cashiers, support and secretarial staff) charge time directly to the case and are included in any analysis of time charged. Each grade of staff has an hourly charge out rate which is reviewed from time to time. Work carried out by our cashiers, support and secretarial staff is charged for separately and isn’t included in the hourly rates charged by partners or other staff members. Time is charged in six minute units. The minimum time chargeable is three minutes (i.e. 0.05 units). We don’t charge general or overhead costs.

15

We set out below the maximum charge-out rates per hour for the grades of our staff who already or who are likely to work on the administration.

Grade Up to 30 June 2017 £ From 1 July 2017 £

Partner 600 620

Director 500 525

Senior manager 435 450

Manager 345 355

Senior associate – qualified 260 268

Senior associate – unqualified 190 196

Associate 170 175

Support staff 89 92

We utilise colleagues in our Tax, VAT, Real Estate and Pensions teams where we need their expert advice. Their specialist charge-out rates vary but the following are the maximum rates by grade per hour.

Grade Up to 30 June 2017 £ From 1 July 2017 £

Partner 1,250 1,315

Director 1,175 1,210

Senior manager 1,040 1,230

Manager 700 735

Senior Associate / consultant 515 545

Associate / assistant consultant 255 270

Support staff 150 160

In common with many professional firms, our scale rates may rise to cover annual inflationary cost increases.

Payments to associates We have not made any payments to associates in the period.

16

Our work in the period Earlier in this section we have included an analysis of the time spent by the various grades of staff.

Whilst this is not an exhaustive list, in the following table we provide more detail on the key areas of work

Area of work Work undertaken Why the work was necessary

What, if any, financial benefit the

work provided to creditors OR

whether it was required by statute

Strategy & Planning Completing job acceptance tasks

Preparing fee budgets & monitoring cost

Holding team meetings not relating to

trading and discussions regarding status of

administration

To ensure efficient progression of

the administration

Indirect financial benefit to the

administration as costs will have

minimised

Secured creditors Preparing reports to secured creditor

Responding to secured creditor’s queries

Required by the secured creditor Required by the secured creditor

Assets Liaising with purchasers and solicitors

Holding internal meetings to

discuss/review offers received

Negotiating and agreeing sale contracts

Securing relevant property records

Securing possession of property

Liaising with agents, utility suppliers and

landlords

Negotiating with landlords for surrender

Liaising with valuers, auctioneers and

interested parties

Assessment and implementation of stock

realisation strategy

Reviewing asset listings

Negotiating offers and sale agreements

To ensure assets realisations were

maximized, and costs against

these realisations were minimised

Ensure third party assets are dealt

with correctly

Direct financial benefit due to asset

realisations

17

Arranging for the completion of retention of

title claim forms

Responding and dealing with retention of

title claims

Negotiation sale of contracts with Speedy &

Siemens

Identifying potential issues requiring

attention of insurance specialists

Reviewing insurance policies

Corresponding with insurer regarding

initial and ongoing insurance requirements

Realising any value within policies

Reviewing leasing documents and liaising

with owners/lessors

Dealing with the debtors ledgers

Liaising with debt collectors and solicitors

Monitoring collections

Investigations Collecting company books and records

where related to investigatory work

Reviewing books and records

Reviewing specific transactions and liaising

with directors and Company advisors

Fulfilling statutory obligations in respect of

directors conduct and assistance with work

following on from its submission

Looking into potential recoveries available

from the pre-appointment accounting

irregularities

Investigations around information brought

to the administrators attention

Required by statute Required by statute

Potential recovery to the administration

depending on outcome

18

Creditors Attending to negotiations and settlement

matters

Setting up a dedicated website for delivery

of initial and ongoing communications and

reports

Receiving and responding to a large volume

of creditor enquiries via telephone, email

and post

Reviewing and preparing correspondence

to creditors and their representatives

Receipting and filing proofs of debt

Corresponding with employees and RPS

regarding claims

Ensure creditor records are

maintained

Indirect financial benefit as creditor

claims are monitored and queries dealt

with

Accounting and

treasury Opening and closing bank accounts and

arranging facilities

Entering receipts, payments and journals

into accounting system

Preparing and authorising receipt and

payment vouchers

Carrying out bank reconciliations and

managing investment of funds

Corresponding with bank regarding specific

transfers

Ensure efficient account

management

Monitoring costs in the case

Required in order to realise assets and

pay liabilities

Statutory and

compliance Preparing and circulating to creditors a

report giving details of the work we expect

to carry out during the case, our fees

estimate and the expenses that are likely to

be incurred

Drafting and reviewing a statement of

proposals to creditors including preparing

receipts and payments accounts and

statutory information

Required by statute Required by statute

19

Preparing decision notice and associated

documentation

Circulating notice of deemed approval and

filing at Companies House

Preparing documents and information for

the purpose of obtaining approval to fees,

Category 2 disbursements and other

matters in the administration

Collecting company books and records

where not related to investigatory work

Dealing with records in storage

Tax & VAT Gathering information for the initial tax

review

Carrying out tax review and subsequent

enquiries

Preparing tax computations

Liaising with HMRC

Filing of documents

Investigating potential pre-appointment tax

relief claims

Updating checklists and diary management

system

Gathering information for the initial VAT

review

Carrying out VAT review and subsequent

enquiries

Preparing VAT return

Deregistering for VAT

Liaising with HMRC

Investigating pre-appointment VAT and

corporation tax position and potential

Required to maintain tax

compliance

Required by statute

Minimises tax liabilities which may be

payable as an expense of the

administration

Ensures VAT refunds are obtained

20

recoveries that may be obtained due to

accounting irregularities

Employees & pensions Drafting, issuing and delivering initial

communications and announcements

Preparing letters to employees advising of

their entitlements and options available

Holding regular meetings with retained

employees

Receiving and following up employee

enquiries via telephone, post and email

Reviewing employee files and company’s

books and records

Reviewing awards and payroll structure

Calculating and paying periodic payroll

Deducting and paying over PAYE/NIC to

HMRC and other deductions to relevant

agencies and third parties

Commencing / continuing a consultation

process

Selecting and making redundancies

Liaising with the RPS and external agencies

Issuing statutory notices

Dealing with general pension scheme issues

Calculating contributions and requesting

payments to the relevant scheme or policy

Dealing with post appointment claims from

former employees

Required by statute

Ensured effective management of

employee issues and claims

Required by statute

Ensured employee records are correctly

maintained

21

Our future work We still need to do the following work to achieve the purpose of administration.

Area of work Work we need to do Estimated cost £

Whether or not the

work will provide a

financial benefit to

creditors

Strategy & Planning Case progression meetings

Meetings with the

appointment taker

£2,500 Indirect financial

benefit

Secured creditors Reporting and liaison with

secured creditor

Distributing to secured

creditor

£3,500 Required by Secured

creditor

Assets Recovery of book debts

Assigning debt recoveries of

insolvent debtors to the Bank

£3,000 Financial benefit to

secured creditor

Investigations Ongoing enquiries with

suppliers

£2,000 Required by statute

Creditors Maintenance of creditor

database

Responding to creditor

enquiries

£500 Required to maintain

creditor database

Accounting and treasury Creating payments and coding

receipts

Bank reconciliations

£1,500 Required to maintain

accounts

Statutory and

Compliance Creation and issue of a

progress report to creditors

Filing progress report at

Companies house

£3,500 Required by statute

Tax & VAT Submission of 2 corporation

tax returns

Seeking clearance for

corporation tax purposes

Submission of an Insolvent

VAT 426

£9,500 Required by statute

To reclaim VAT

Closure procedures Creation and issue of a final

report and moving the

Company to dissolution

Final distributions and closing

accounts

£6,200 Required by statute to

bring the

administration to a

close

22

Disbursements We don’t need to get approval to draw expenses or disbursements unless they are for shared or allocated services provided by our own firm, including room hire, document storage, photocopying, communication facilities. These types of expenses are called “Category 2” disbursements and they must be directly incurred on the case, subject to a reasonable method of calculation and allocation and approved by the same party who approves our fees.

Our expenses policy allows for all properly incurred expenses to be recharged to the administration and has been approved by the secured creditor where required.

The following disbursements arose in the period of this report.

Category Policy

Costs

incurred

£

2 Photocopying - at 5 pence per sheet copied, only charged for circulars to

creditors and other bulk copying. 118.51

2 Mileage - At a maximum of 71 pence per mile (up to 2,000cc) or 93 pence per

mile (over 2,000cc) 830.08

1

All other disbursements reimbursed at cost:

Postage

Storage

Car parking charges

Courier fees

Hotels/Accommodation

Bordereau fees

Other travel costs

Other tech costs

1,448.17

424.08

324.08

29.45

192.23

225.00

95.64

374.96

Total 4,062.20

Our relationships We have no business or personal relationships with the parties who approve our fees or who provide services to the administration where the relationship could give rise to a conflict of interest.

23

Legal and other professional firms We’ve instructed the following professionals on this case:

Service provided

Name of firm /

organisation

Reason selected Basis of fees

Legal services, including:

appointment related matters;

advice on ROT claims; and

sale of business contracts

Gateley PLC Insolvency

expertise

Time costs +

disbursements

Legal Services, including:

Preparing letters for specific

book debt collections

Browne Jacobson

LLP

Industry knowledge Fixed fee per

letter

Chattel agents and valuers Hilco Appraisal

Ltd

Industry knowledge Fixed fee +

disbursements

Auctioneers John PYE & Sons

Ltd

Industry specialism % of realisations

+ disbursements

24

Court details for the administration: Leeds District Registry 261 of 2017

Company’s registered name: Plant and Consumable Services Limited

Trading name: PACS

Registered number:

04132575

Registered address: Central Square, 29 Wellington Street, Leeds, LS1 4DL, formerly Unit

4 Boundary Court, Willow Farm Business Park, Castle Donington,

Derbyshire, DE74 2UD

Date of the joint administrators’

appointment:

6 March 2017

Joint administrators’ names,

addresses and contact details:

Anthony Steven Barrell of PricewaterhouseCoopers LLP, Donington

Court Herald Way, East Midlands, DE74 2UZ and Toby Scott

Underwood of PricewaterhouseCoopers LLP, 8th Floor Central

Square, 29 Wellington Street, Leeds, LS1 4DL

Appendix D: Other information