100% increase in the number of solvent liquidations at Portland

Hampshire and Dorset based Business Recovery and Cashflow experts Portland has experienced a record 12 months of appointments, which has seen a 100% increase in the number of solvent liquidations where all company creditors are settled and the remaining balance paid to shareholders.

The 12 month period in 2018 saw Portland pay out over £53 million to shareholders of over 50 companies including the collection of debts and refunds of £13 million.

This companies Portland assisted include local companies and large national brands, covering a wide range of businesses including a major property development company, a theatre production company, a jewellers and a hotel.

A Members Voluntary Liquidation is a cost-effective formal process for dealing with surplus funds once a company’s creditors have been paid. This typically happens after the company’s business has been sold, and results in shareholders receiving a return on their investment in a tax efficient way, usually with the benefit of entrepreneurs relief.

100%

Portland Managing Director Carl Faulds commented:

“When asked to deal with large amounts of money on behalf of clients, we are delighted that accountants and our business partners trust us with their clients’ affairs and continue to see us as the local ‘go to business recovery professionals’. We work hard to ensure that we maintain the trust in our services through consistently maintaining high professional standards over the last 20 years. We are able to provide a complete in-house help and advice service for businesses, both solvent and insolvent.“

“Although we have paid out a record amount of money to shareholders, the other side of the coin is over the last 18 months we have seen a lot of anxiety in the business world. We attribute this partly due to the risk of a no deal Brexit, but also in my view is because it is 10 years since the last economic downturn and the cycle typically comes round very 8-10 years. We have seen an increasing number of companies struggle due to rising costs at a time of stagnant or falling sales.  Traditional businesses such as retail, hospitality and manufacturing are particularly seeing employment costs rise as a result of wage rises and to meet increasing employer pension cost obligations. Directors are having to make the difficult decisions around increasing prices or sales, at a time when discounting is rife. We pride ourselves at Portland as being able to offer a tailored and dynamic service which ultimately achieves the best possible outcome for business owners, creditors and our business partners.”