Kitchen furniture firm sold in pre-pack deal following administration

Kitchen furniture manufacturer Precision Stone has been recused from administration after being acquired in a deal worth over £500k.

Benjamin Wiles and Philip Dakin, both of Kroll Advisory Ltd, were appointed as joint administrators of Precision Stone Limited on 19 February 2024.

In the build up to its administration, the report outlined that the company has been loss-making ever since its incorporation back in 2017. Further pressure relating to the Covid pandemic and subsequent impacts that followed compounded the position of the company even more.

The business had embarked on a cost saving programme, which resulted in lower input costs and overheads, leading to EBITDA growth despite reduced turnover through 2023.

However, the company had accrued a significant liability to the HMRC, which applied further pressure due to the arising doubt that this debt could be repaid considering the company’s ongoing trading performance.

Following the appointment of administrators, the company was sold to Precision Stone Surfaces Limited, a newco incorporated 14 February 2024, in a pre-pack deal for a sum of £573,574, which was received in full upon completion.

The newco is owned by parent company N S S Holdings Limited, trading as Natural Stone Surfaces with a turnover of £18.7m for the year ended September 2023 and a pre-tax profit of £4m.

The sale resulted in securing 41 of the 45 jobs of the business, as well as ensuring a continuation of supply to the current customer base.

Following the acquisition, the company name will be changed to Precision Stone Surfaces to align with the purchaser, which operates a 175,000sqft manufacturing and storage facility based in Derbyshire.

As for creditors, it is expected that these will suffer a shortfall of £12m, which is largely owed to its previous parent company International Kitchens Holding S.a.r.l – owed £10.1m.

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