‘Erroneous’ funding claims brought down Positive Outcomes

Serious errors in the recording of learner achievement rates during a Skills Funding Agency audit earlier this year led to the downfall of Positive Outcomes, it has emerged.

The South Normanton, Derbyshire training firm with a base in Manchester ceased trading in March. It had made “substantial erroneous claims” for funding in the region of £2m, according to the audit.

Nearly 200 people lost their jobs at Positive Outcomes in March after the firm went into administration. The firm had a Skills Funding Agency contract worth more than £11m, but didn’t make the latest list published by the Agency following concerns after the audit.

It has also emerged that the SFA blocked the sale of the firm to any bidders due to concerns over funding bidding.

Kelly Ball, joint managing director at Positive Outcomes, said at the time: “Unfortunately, after 20 years of trading, it is with deep regret that Positive Outcomes has had to file for administration with immediate effect.

“The board of directors have worked tirelessly to avoid this outcome. Our intention was to find a suitable buyer for the business. However, this unfortunately was not possible, resulting in the board having no alternative but to cease trading.”

According to documents seen by TheBusinessDesk.com, Positive Outcomes owes unsecured creditors around £1.5m. Administrators from FRP Advisory say they will receive between 7p and 12p in the pound.

In March it also emerged that Positive Outcomes was issued with a notice of serious breach from the SFA over its financial control in November 2016.

In January this year chief executive Chris Longmate stepped down as CEO after eight years in the job.