A maker of conveyor systems for the mining and construction sectors went bust owing more than £3.8m, a report from administrators reveals.
SE-TEK, which was set up only last year following the management buyout of Komatsu Mining’s UK operation, collapsed last month despite indications it was growing fast with "substantial" new business wins. Documents prepared by FRP Advisory show the firm had outstripped its business growth plan thanks to several large contracts that would have seen turnover reach £20m per year.
However, the company encountered working capital difficulties in the lag between investment and orders being received as well as what were described as "inefficiencies" as it was setting up. SE-TEK directors sought the support of equity investors to plug the gap but despite terms being agreed, the deal fell through and the firm turned to insolvency specialists to market it.
