Shrewsbury property investment firm collapses owing creditors a 'significant amount'
A property investment holding company based in Shrewsbury has collapsed owing a “significant amount” to a number of creditors, it has been revealed.
This week liquidators have been appointed to try and release cash to creditors of RGB Group Shrewsbury Limited, of Brassey Road, Old Potts Way, and RGB Developments (UK) Ltd.
Steven Illes, a joint liquidator, said he and a colleague at MHA MacIntyre Hudson were appointed on February 16 following a meeting of creditors at RGB Group Shrewsbury the day before.
He added: “We are also liquidator of an associated company, RGB Developments (UK) Ltd.
“At this time we are at the early stages of our appointment and our investigations are ongoing regarding the companies’ affairs and engagement with the directors.”
RGB Group only had one employee according to the last set of accounts filled to June 30, 2021, but the accounts point to the companies together having some 66 employees at that time.
Mr Illes added: “The company has a significant amount and number of creditors and as part of the liquidation process it is our role to recover assets and pursue claims to enable a dividend to be paid to creditors.”
He added that he was unable to provide further figures because this information is currently not in the public domain.
According to documents on the Companies House website, a district judge at the High Court decided on November 22, 2022, to order that RGB Group Shrewsbury Limited be wound up after hearing a creditor’s claim against the company earlier in the year.
Financial documents lodged with Companies House in June 2021 revealed that the firm, then based at Shrewsbury Business Park, had seen a significant drop in its profits.
It also pointed to creditors owed millions of pounds in total at the time but was said to still be a going concern.
In 2020 the company reported a gross profit of £7.12million falling to £6.398 million.
Its operating profits had fallen from £2.769m to £6.398m and its profits before tax had gone down from £3.158m to £1.236m.
Director Jeffrey Robert Britnell said in his annual report to shareholders in 2021 that the company forged ahead with plans to invest in property and in developments as part of its strategic aim to have a self-sustainable workload for its construction business RGB P&C.
The company had invested in joint venture development schemes as part of its plan.
The main activities of the group were those of hotel and apartment new builds, refurbishment and plastering contractors and property development.
Mr Britnell in his annual report added: “Despite the drop in figures RGB Group Shrewsbury remains in a strong position and with the aim to have these developments completed in the next 12/18 months we are confident to see RGB returning to pre Covid margins.”
The company had interests in joint ventures including Troc Quarters Limited, Verve Harefield Limited, Nest Homes Limited, Verve Telford Limited, Verve Rodington Limited, Verve Church limited, Verve Gain (Harwich) Limited and Verve Romford Limited.
