Administrators called in at global data management firm
A Coventry data, analytics and ERP firm that has offices across the globe, has appointed administrators after reviewing restructuring options.
Kagool, which is headquartered at the 68,000 sq ft Friars House in Coventry city centre, employed 190 staff last year.
It has appointed UHY Hacker Young to look at its UK operations, as it has experienced a “significant decline in customer IT investments across the UK/EU over the past 12 months” rendering UK operations to be “no longer viable in their current form”.
Set up in 2004, Kagool also has offices in London, Chicago, Dubai, Qatar, Kuala Lumpur, Singapore, Philippines, Hyderabad, Pune and Mexico.
In its latest available accounts, just filed at Companies House, for the year to July 2022, the firm had assets of just over £5.8m while creditors were owed £5.5m.
A statement from Kagool UK on October 15 said: “Kagool UK operations are designed to deliver across the UK and EU markets.
“Due to a significant decline in customer IT investments across the UK/EU over the past 12 months our UK operations are no longer viable in their current form, as a result we are reviewing restructuring options.
“Any restructuring will only impact UK operations, other international operations will remain unaffected.
“In tandem, as our UK revenues have shrunk, our non-UK revenues have grown considerably. As a result, the majority of UK employees today actually work on non-UK projects for other Kagool global group companies (eg Kagool UAE/USA) where IT investments continue to grow sharply in these regions.
“In addition since moving our global R&D centres to the UAE 12 months ago, we have seen accelerated product innovation through significant government investment and support way beyond what could be achieved from developing within the UK. These factors combined are driving a shift of intellectual capital away from the UK into regions such as the UAE.
“UK employees are being remapped and relocated to other Kagool companies to continue the amazing delivery support for our international customers, as a result we expect to retain most if not all headcount affected by any restructuring.”