Circle Express is back on track thanks to CVA
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CIRCLE EXPRESS says its company voluntary arrangement (CVA) is off to a flying start, with the business “back on track and extremely positive regarding future trading”.
Speaking exclusively to CM, chief executive Chris Coffey says that the CVA has given the company a fresh start on its balance sheet.
“The CVA has gone extremely well, with wonderful support from all our creditors and customers,” he adds. “We are achieving projections and forecasts and the repayment schedule is under way with the supervisors.” The Uxbridge-based express distribution specialist appointed turnaround firm KSA Group to devise the CVA following a tough financial year.
Circle explains that it experienced an “extremely difficult trading period”, which led to cashflow difficulties and significant losses in December 2011 and January 2012.
Under the terms of the CVA, Circle is able to continue trading while it repays its historical debts over a period of five years at a rate of 38.3p in the pound owed to unsecured creditors. The deal was unanimously agreed by creditors at a meeting on 10 May.
Latest results, filed at Companies House for the pre-CVA year ended 31 October 2011, reveal a pre-tax loss of £359,330, compared with a £144,845 profit in 2010.
Turnover was up 8.2% to £27.2m from £25.1m the previous year.