Some bad news and a welcome challenge

On return from two weeks leave an unwelcome message tells me that the IT company has gone into administration. An administration protects the company and more information is set out on the .Gov.UK pages here https://www.gov.uk/put-your-company-into-administration.

The challenges the company faced were known earlier in the summer but the expectation was the short term difficulties would be overcome. The impact was already apparent as equipments deliveries were not received and staff had been paid late. Projects would not take place as planned but could be rescheduled. However the administration was going to make this worse as confidence would be lost and a downward spiral of loss of key staff even though the administrators had stated it was business as usual.

Information was scare and and in the vacuum it is the negative that flourishes. So the conversations had to be focussed on facts and clarity of requirements. Nothing had changed, the service requirement remained that IT support was fundamental and would continue. Staff would be back at the start of term and need the usual service, new students would arrive and be added as users and forgotten passwords would need to be reset. The provision of the services was the basis of the contract, the contract would continue and the service provider would be paid for the services provided.

In various forms the message was repeated. I remained committed to the provision of service, the invoices due would be paid, the staff and suppliers would continue to provide service and be paid. If the previous management did not recover their ownership of the business by settling the debts due then the business as a going concern would be bought and refinanced. I recognised that this is very difficult for staff to experience. I reflected that their anxiety was real and would take up significant energy but that we would remain committed to them and the IT service provision.

The situation remains uncertain and after the long bank holiday weekend we will all meet to listen to the concerns and share what we know. I will focus on the known facts and restate the commitment. My expectations is that there will be more positive news during the days that follow but for now it is the restatement of what I have said without any elaboration.

Author: Martin A Cunningham

Director of Finance & Operations, Chartered Accountant

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