Overview:
On 2 February 2024, David Kemp and Richard Hunt of Exigen Group were appointed Joint Administrators of A1 Comms Limited, a Derbyshire-based telecommunications business.
The company, which operated nationally under various trading names, entered Administration following a period of sustained financial distress. This was driven by complex contractual arrangements, deteriorating cashflow, and mounting liabilities, including HMRC arrears.
Financial Challenges:
A1 Comms Limited worked in a highly competitive and complex sector. Incorporated in 2002, the Company had enjoyed many years of success, hitting £157m turnover in 2021.
The Company had forged strong relationships with prominent mobile phone retailers and networks and was well positioned in the market.
The company earned commission from mobile networks for signing up new customers, but those payments could be reduced or taken back if customers cancelled their contracts early or didn’t pay their bills.
The space became more and more competitive over the years and the Company, despite its size, was negatively impacted by those challenges.
Exigen’s Appointment and Outcome:
After their appointment, the Joint Administrators at Exigen Group focused on stabilising the business, maximising returns, and protecting creditor interests. The company continued to trade for a short time after entering Administration to maintain goodwill and support a going concern sale. This trading period helped achieve a much better overall outcome.
The Administrators sold company vehicles, recovered over £65,000 in outstanding payments, and began selling the freehold properties. They also started legal proceedings to resolve disputes over money owed, including a High Court case involving a third-party funder and one of the company’s network partners. Further action was taken to recover unpaid insurance commissions.
A creditors’ committee was also formed, to assist the Joint Administrators perform their duties.
The Joint Administrators have repaid secured creditors in full, distributed a significant (multi-million) interim dividend to HMRC and since overseen a move of the Company to liquidation, which should enable HMRC to be repaid its residual balance and for unsecured creditors to receive a distribution in due course too.
Administrator Comments:
David Kemp of Exigen Group said:
“Telecoms is a demanding sector with complex commercial arrangements and tight margins. For A1 Comms, these challenges were compounded by legacy debts and contractual clawbacks. Our approach focused on protecting value through targeted asset realisation and strategic legal action, achieving an excellent outcome for creditors in a difficult set of circumstances.”