A marina in north Wales, which is part of a network of marinas owned by Cardiff-based Marine & Property Group, has gone into administration. Simon Monks, Nicola Clark, and Colin Haig, of accountancy firm Azets, have been appointed joint administrators of Port Dinorwic Marina Limited.
Port Dinorwic Marina Limited dates back to 1763 and has been providing berthing and marine services at the picturesque Grade II listed marina at Y Felinheli for many years. It has 180 berths offering a year-round cruising of the nearby Menai Strait, which separates Anglesey with mainland Wales.
However, the marina has experienced financial difficulties in recent months, administrators said, with the operations not reaching their potential during ongoing economic and financial uncertainty since the beginning of this year.
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In January, there were reports of staff not being paid at the marina with many employees claiming this had been an ongoing problem since March 2022. According to Companies House, accounts made up to the year ending 31 December 2021 for Port Dinorwic Marina show the business filed a turnover of £504,966 and a gross profit of £331,307.
The joint administrators said they will continue to trade Port Dinorwic Marina while completing a rapid assessment of marina operations.
Simon Monks, restructuring director with Azets and joint administrator, said: “Port Dinorwic Marina Limited has been experiencing significant financial difficulties in recent months, to the extent a viable turnaround could not be achieved outside of an administration process, despite the best efforts of the board.
“We will immediately begin the process of understanding the underlying issues and finding a sustainable solution, with a view to achieving the very best outcome for staff, creditors and the local community. In the meantime, the continued cooperation of stakeholders is appreciated.”
Port Dinorwic Marina was acquired in 2017 by The Marine and Property Group Limited (MPG), which owns and operates marinas at Cardiff, Burry Port, Aberystwyth, and Watchet in Somerset.
The group was also placed in administration in April 2023. The other marinas it owns are not in administration and continue to trade.
However, Bayscape Limited, which manages a block of luxury apartments next to Cardiff marina and is owned by the directors of MPG, was put into receivership on May 16.
Concerns over the group’s financial situation have been ongoing amid reports of staff not being paid in full or on time, equipment being impounded, and legal disputes with contractors.
Earlier this year, MPG director Chris Odling-Smee told the Western Mail that the delayed salary issues were related to cash flow and spoke of plans to raise £35m from a new corporate bond.
He said the administration of the group was a protective measure to support the delayed capital financing of the holding company. He added that he was assisting the administration process in the hope of raising funds through that same corporate bond to exit the insolvency process. He declined to elaborate on the origin and details of the bond at this stage.
When asked whether any reacquisition of the holding company would be a matter for the administrators in agreement with the shareholders, Mr Odling-Smee said: “We’re not looking to buy back the company. We’re just settling the position with the creditors of the holding company only and this is where the collaborative element comes in.”
“I am the principal director and shareholder and I’m working collaboratively on the whole finance deal here,” he said, adding that placing MPG into administration was a joint decision between himself and the administrators.
Although no time frame for the refinancing of MPG has been given, it is understood a deal to resolve the insolvency of the group must be made soon. One of the group's subsidiary companies, Cardiff Marine Services, has a winding up petition against it from HMRC with a hearing expected this month.
Interested parties and other stakeholders can contact the joint administrators at PortDinorwicMarina@azets.co.uk .
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