Overview:
On 18 November 2025, David Kemp and Richard Hunt of Exigen Group Limited were appointed Joint Administrators of Key2 Plastics Limited, a long‑established manufacturer of bespoke plastic products operating from Hampshire.
Founded in 2002, Key2 Plastics specialised in the manufacture of point‑of‑sale displays, signage and retail fixtures for corporate and retail clients nationwide. The Company’s in‑house manufacturing capability was central to its offering and supported more than two decades of successful trading.
Despite its long trading history and technical expertise, escalating financial pressures ultimately led the Company into Administration.
Financial Challenges:
Key2 Plastics encountered financial difficulty following a change in ownership in 2024. Subsequent changes to the Company’s supply chain and pricing structure, intended to improve competitiveness, resulted in a reduction in gross margins of approximately 20%, particularly impacting its largest customer, which historically accounted for circa 65% of turnover. Although a new sales team secured additional accounts, overall profitability declined and cashflow weakened.
These pressures were compounded by:
- HMRC arrears, including VAT and PAYE
- Rent arrears at the trading premises
- Deferred consideration payments still due to the former owners
- Supplier credit withdrawals following the issue of a winding‑up petition
In an attempt to stabilise the business, Mr Gravestock is understood to have injected personal funds and also reduced headcount from 25 to 21 employees. However, despite these efforts, the pressures continued.
Exigen Group was introduced by the Company’s accountants in September 2025, shortly after the winding‑up petition was issued. At that stage, the director was under significant pressure and uncertain as to the options available, and early discussions focused on explaining the available routes and agreeing a clear exit strategy.
Exigen’s Appointment and Outcome:
Following appointment and earlier discussions with the director around the available options, the Joint Administrators concluded that a pre‑packaged Administration sale represented the best available outcome for creditors, employees and customers.
An Asset Valuation was instructed to market the business and assets prior to Administration. Marketing activity included a mailshot to over 6,000 potential buyers and targeted online advertising. An offer was received, and following negotiations, a best and final offer was agreed, payable partly on completion and mostly on a deferred basis over ten months, secured by a personal guarantee.
The sale completed immediately on appointment on 18 November 2025, with the business and assets transferred as a going concern.
Key outcomes included:
- 21 employees transferred, preserving all jobs
- Business and assets sold as a going concern, maintaining customer continuity
- Ongoing debt recovery strategy, including an agency agreement to maximise realisations
Administrator Comments:
David Kemp of Exigen Group said:
“When the director first approached us, the company was facing a winding‑up petition and there was understandable uncertainty around the options available. By taking the time to explain those options and agree on a clear plan, we were able to reduce that pressure and work collaboratively towards a solution. A swift going‑concern sale ultimately preserved all jobs and delivered the best achievable outcome for creditors in difficult circumstances.”