220 jobs under threat as administrators called in to Nottingham firm

Some 220 jobs are at risk at a Nottinghamshire firm after administrators from RSM were called in.

Tom Straw and Chris Lewis were appointed joint administrators of Light Source Design on January 31.

Founded 20 years ago and with its head office in the Nottingham suburb of Edwalton, 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.

Administrators told TheBusinessDesk.com that the firm 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 look to sell the business.

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.”