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APS files for creditor protection
Published on: 02 January 2008
The directors of specialist mortgage broker APS Mortgages (UK) Limited confirm today that they have placed the company into administration, as a responsible reaction to the downturn in business that is projected to continue for the foreseeable future in difficult trading conditions. The company is looking to take advantage of the legal protection this offers to restructure its operations and finances appropriately.
APS managing director and majority shareholder, Peter Guntrip, reflecting on the rationale behind the decision, said: "In reality, trading profitability has been difficult for our sector for some years with squeezed margins in an increasingly competitive environment; the recent restrictions on lending following the so-called 'credit crunch' have merely proved to be the last straw. APS has grown rapidly over the last five years because we have been able to help people get the mortgage finance they never thought they could and I am convinced that this need is out there more than ever. I am projecting that there will be considerable fall-out in this sector, but with brighter times for those who survive and APS is determined to be one of those, which is why we have taken this step now. I naturally regret the impact on employees and creditors that this has necessarily caused, but look forward to working with the administrators to a positive outcome."
Appointed administrator James Tickell of Portland, one of the south's leading business recovery practices, tended to agree commenting: "Whilst it is always sad to see any business fail, I'm pleased that the directors have taken the early decision to face up to their difficulties before being overwhelmed by creditor pressure and whilst there is time to protect the core business. Unfortunately, as part of the process, we have had to make some 23 staff redundant and we are already negotiating with the landlord about downsizing, simply reflecting our desire to preserve cash to weather this storm and with both steps being made much simpler through administration. I am open-minded about the future outcome. It could well be that we are approached by a buyer looking to take over APS' strong brand, customer base and expertise. This opportunity will appeal to those with the foresight to look beyond the current times, possibly to a lender looking for a captive market or a broker in a similar financial services sector looking to diversify. If such an approach works for APS, then we shall do it. Vultures need not apply however, as we are equally open to the prospects of APS implementing a restructuring of the liabilities owed to third parties which, because of the early action, are not that significant compared to shareholder investment, allowing APS to come out the other end with their agreement."
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