Centrix administrator gives update on sale process
Talks with potential buyers under way, report filed on Companies House over Christmas break reveal
A hunt for buyers of bust British software vendor Centrix Networking remained under way in December, a report filed with Companies House over Christmas reveals.
The Newbury-based workspace management specialist, which traded as Centrix Software, was placed into administration in October after encountering cashflow difficulties.
According to a joint administrators' report submitted on Companies House on 27 December, the liability due to Centrix's investor, Ki Corporation, stands at about £2.7m.
Upon their appointment, the joint administrators of the company opted to continue trading the business with the hope of achieving a sale, working in tandem with Lambert Smith Hampton (LSH), a firm of professional valuers and auctioneers.
The report indicated activities on this front were in full swing in December after a firm of "IT experts", E G Limited, was brought in to value Centrix's software applications.
"As a result, a list of potential interested parties has been formulated. At the date of this report, LSH and Young Associates [a consultancy Ki appointed] are in discussion with interested parties," wrote joint administrator Asher Miller of David Rubin & Partners.
"I have emphasised my desire to expedite a sale of the business, while achieving the best purchase price possible."
Centrix, which listed the likes of Softcat and SCC as reseller partners on its now defunct website, made an analytical tool designed to help customers weigh up whether to migrate to cloud and then to assist with the migration.
Its efforts to develop a more comprehensive product to support large-scale cloud migration led it to seek extra funds last year, the joint administrators' report details.
Centrix's investor Ki stepped in and granted it a loan but soon became concerned that requests for continued funding "were not based on realistic income projections" for what was a largely untested product, the report said. It was also concerned that the costs of supporting Centrix were growing substantially.
According to the report, Centrix had seen sales narrow and losses widen in recent years. Turnover for the year to 30 June 2015 stood at £1.15m, down from £1.38m in 2014 and £1.84m in 2013. After-tax losses for 2015 hit £3.84m, up from £2.34m in 2014 and £2.66m in 2013.
The three directors of the company, including Lisa Hammond and Jon Fuller, were made redundant almost immediately and a further six staff were let go in November, the report added.
Ki agreed a loan facility to the administrator to allow Centrix to continue trading while buyers are sought. At the time of the report, the administrator said it had received funds from Ki totalling £450,000.
CRN contacted David Rubin & Partners for an update on the sale process but the company said it would not comment further at this time.