Tuesday, 24 September 2013

Paisley-based SmartOffice Technologies goes into Administration

SmartOffice Technologies is a company based in Paisley, Scotland; a subsidiary company for Picsel International Ltd, which is based in Malta. Whilst SmartOffice Technologies specialises in software development and solutions, for mobile devices in particular, the products, patents and intellectual property are both created and owned by Picsel.

Brian Milne and Linda Barr of French Duncan have been appointed as Administrators for both companies, stating that the reason for entering administration was due to “cashflow difficulties, ultimately resulting in creditor pressure which was undermining its ability to perform”. They have already taken measures to reduce SmartOffice Technologies’ expenses, by making 14 of their 31 staff redundant.

Due to the close relationship of both companies, Milne and Barr have decided to sell them both together, as a package. They believe that this opportunity will generate a lot of international interest, “given the popularity of the SmartOffice brand, particularly throughout Asia, and a customer base including such household names as Samsung, LG and Symantec”. They are arguably one of the leading providers of secure office solutions, so Milne and Barr are hoping to make a quick sale at a good price.

A quick sale is always preferable to Administrators, as they are not allowed to trade the business as a loss, and they personally take on the liability of employment contracts after 28 days. One of the leading issues of a quick sale is that valuation is likely to be depressed due to the urgency of the situation. However, with such a name as SmartOffice Technologies, and its high reputation to go alongside it, it is likely to be a smooth sale.

If you run a company in Scotland and are facing similar financial difficulties, then please get in touch with Derek Robinson, who is our Regional Manager for the area. He will be able to discuss the situation of your company with you, and give you some advice regarding your options.

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