Bath workplace firm calls in administrators after running out of cash

A digital specialist in Bath has announced it is calling in the administrators after running out of cash.

Actual Experience has also announced that it is to suspend its shares on the AIM with immediate effect.

The company which offers digital workspace services has been battling to survive for some months and has been looking to find extra fundings.

It also made a series of cuts and job losses over the last 12 months as it struggled to balance the books but after running out of options it has decided to call in the administrators.

According to the latest report Actual Experience employed 65 people and made a loss of £5m last year.

In its latest report the company said it was forecast to run out of cash by the end of the year.

During the financial year ended 30 September 2022, the Company reduced ongoing expenses from £680,000 per month to £460,000.

The board had come to the conclusion that the view that it had reduced headcount and its operating cost base to the lowest viable level while still retaining the ability to deliver its services.

Although the Company made commercial progress during the last year, securing new revenue contracts and significant sales has taken longer than expected to bring in the extra revenue.

The company also announced in its interim results that if it were unable to secure an appropriate combination of new revenue contracts, cost reductions, and/or further funding then it would be able to continue trading.

The board has been exploring an equity fundraise to increase  cash reserves and has been in active discussions with existing and potential shareholders over the last few months.

It has also been in discussions with various venture capital trust and EIS funds along with other potential investors.

The company has explored other strategic options with the  help of FRP Advisory Trading Limited including an accelerated M&A process to seek an acquirer of the group’s business and assets, and contingency planning.

FRP Advisory contacted a number of potential acquirers however it received no firm indications of interest in response.

Having considered the company’s rapidly depleting cash position and the lack of progress regarding an equity fundraise and the other strategic options explored, it is the board’s view that it is unlikely to be able to secure the funding that it needs.

The board has therefore decide to file a notice to appoint administrators.