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Dixon Scaffolding (Transmission) bought in pre-pack administration

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Dixon Scaffolding (Transmission) Ltd has been purchased in a pre-pack administration after missing a payment due date with the taxman.

The administrators, David Hill, Julie Anne Palmer and Peter Dewey of Begbies Traynor, were drafted in to the company in early July, and then sold the business and assets on to Dixon Pentland Scaffolding Ltd and MTL Scaffolding Ltd, two related companies, for £390,000.

Two ‘Time to Pay’ agreements had been made with HMRC, but were both cancelled in early 2012 after the firm did not meet a payment of £10,000.

Established in 1968 by Mike Dixon, Dixon Scaffolding (Transmission) specialised in scaffolding for the energy and heavy industrial industries and had over 100 staff.

Mr Dixon took semi-retirement and bought in a new managing director and management team to run the business in 2009. A temporary dip in work from its largest customer the National Grid and some new long-term contracts at “uncompetitive prices” led to a loss of £633,000 for the year ending 31 December 2010.

The new management team exited the firm in May 2011, and Mr Dixon took the helm once again. Despite his efforts to bring the firm back to profit, losses of £293,000 were reported for the year ending 31 December 2011.

Via: business-sale.com

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