Case study example one

Low cost Gym successfully trades out of a Company Voluntary Administration Order

Background

Ryan Leisure Ltd has run a low cost gym in Stevenage for several years. Having entered into Company Voluntary Administration they cut all possible costs and kept accounts themselves using a series of spreadsheets. It was difficult to produce accounts to current accounting standards and due to the requirements for electronic filing some of RLLs latest submissions had been rejected and penalties were accruing. Business seemed to be improving but the different stakeholders of the business also wanted independently prepared accounts to give them confidence in the security of their investment.

Needs

RLL needed to get caught up with Companies House and HMRC filings as well as to produce independent management accounts for the shareholders. Enterprise was engaged by RLL in July 2011 to provide all the accounting services that the business required. This meant providing all processing, payroll, monthly management accounts, statutory accounts and monthly meetings.

Result

RLL quickly filed all overdue accounts and started to review the management accounts in detail once each month. Access to accurate and timely management information helped the key stakeholders to have a good level of control over the business and confidence in its future. RLL came out of its CVA early and is now consistently profitable. RLL are now doing some of the processing themselves with Enterprise running a month end remotely on their web-based bookkeeping platform as well as producing quarterly management accounts and attending quarterly management meetings.