Company Snapshot: Resources Services Group Ltd
Restructuring capital base reduces debt facility to £12m
The Resource Services Group is registered in Northern Ireland and owns several trading subsidiaries in England as well as being the parent company of Resource (NI).
The companies have a number of contracts specialising in contract cleaning, security and other support services. The group, since September 2011, is itself now wholly owned by Resource (No.1) Ltd.
Resource Services Group was sold to a group of its senior management team in September 2011. The new owners, through Resource (No.1), completed complex negotiations with their bankers, (the former) Anglo-Irish Bank, to restructure the capital base of the group. A key feature in the registered report and accounts is a major reorganisation through this restructuring of the company's capitalisation.
In advance of the capital restructuring, in March 2010, the group took an impairment charge of £28.5m into its operating costs in the year to March 2010, affecting both operating profits and the pre-tax results. This reflected an adverse judgment on the value of intangible assets.
Recent capital restructuring has created a balance sheet value of shareholders' funds which moves from a deficit of £59.2m to a positive of £11.7m at the end of September 2011. The company bank has provided a new debt facility of £12m (reduced from £68m last year) for a fixed term ending in June 2014 alongside additional working capital and bonds to grow the business.
After the changes the amount due to creditors after one year, £83.7m in March 2010, reduced to £13.3m in September 2011.