In a move common to struggling companies Firstport Group have cancelled millions of pounds of shares as part of a major financial restructure designed to improve their balance sheet. The directors have filed a "certificate of solvency" with Companies House. Such a procedure is often carried out by companies that are suffering from irrevocable revenue loss.
That this action has been taken, that Firstport are trying to obtain market share with loss leading management contracts or by purchasing companies with management contracts (as indicated by the purchase of Pentland after the owners Galliford Try took the assets out of Pentland) and bearing in mind the net worth of £-35,000,000 (even after an uplift in valuations of their assets) all points to impending major financial trouble.
About Peverel would urge all contractors to make sure they take out a payment indemnity insurance policy, which will protect their companies against a Firstport default.
