Ex Events acquired by Burnbrae in administration deal

Ex Events has been unhitched from parent company Rivington Street Ventures (RSV) and sold to Burnbrae Events as part of an administration deal.

Ex Events bought by Burnbrae
Ex Events bought by Burnbrae

The changes follow a demand from Ex Events' parent company to pay an 'inter-company loan' of £429,598, as RSV was taken into administration on 4 December.

Ex Events is now owned by Burnbrae Events, via administrators Resolve.

A total of 13 interested investors led to two offers for the business, with Burnbrae securing a deal for £40,000.

"Flawed"

The current directors are David Taylor and Kimberley Dale. Taylor told Event: "From our point of view, it is nothing but a positive thing. Moving forward with the Burnbrae Group is fantastic, and our connection with our old parent company was something that was flawed."

Ex Events was incorporated in 2010 as a wholly-owned subsidiary of Rivington Street Ventures, with initial working capital loaned from that group.

Meanwhile, Mel Atkins, former managing director of The Finishing Touch (TFT), who joined Ex Events in 2011 when TFT was acquired, but is not a current director, said that all seven members of the team had been retained.

"We have worked really hard and made sure we have carried on," stressed Atkins.

"I personally went and saw all of our suppliers, who are all supportive. We have just delivered 28 Christmas parties, with another 20 to come."

Growth

He added that Ex Events had been "growing for the last six months" and "had the best December in 15 years".

According to administrator Resolve Partners LLP joint administrator Mark Supperstone in a statement filed at Companies House, the "company met its growth and revenue targets, [but] the [Rivington Street] Group's structural policies regarding the distribution of central costs meant that the company's administrative costs were relatively high compared to its turnover."

Ex Events' annual accounts to the end of August 2012, filed at Companies House, included a payment of £100,001 to the parent company.

Unsustainable

This partly resulted in a net loss for the year ended 31 August 2012 of £318,740. Following an office move to cut costs, the net loss in the year to the end of 31 August 2013 reduced to £41,525.

"Whilst an improvement on the previous year, this was not sustainable in the long term," added Supperstone.

Atkins acknowledged it had been a difficult time, but said that Ex Events was positive for the future, with two new products planned for 2014, and a "very strong" start to next year.

He added that overheads had now reduced to one third of previous costs, and said "we've been given an opportunity with Burnbrae for growth".

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