Westhill-based cleaning company Contract Solutions Grampian (CSG) has been acquired by Berkshire-headquartered facilities services firm Atlas FM in a pre-pack administration deal valued at just under £1 million.
The acquisition has preserved 241 jobs. Finalised swiftly before Christmas, it ensures the transfer of all 11 office staff and 230 cleaners to the new ownership.
The urgency of the deal was driven by CSG’s critical financial position, which saw the company facing insufficient funds to meet its £222,000 December payroll. Established in 2009, CSG provided cleaning services to approximately 340 clients across the North-East and other regions.
The company’s financial health had deteriorated, reporting a turnover of £5.98 million but a loss of £49,787 for the year ending 31 December 2024. CSG had also incurred losses in the preceding year, having struggled significantly since the onset of the pandemic.
Atlas FM emerged as the preferred buyer after FRP marketed the firm in late November. As part of the transaction, Atlas acquired CSG’s debtor book, with a book value of £627,000, for £486,000, and paid an additional £422,000 for other company assets. A non-refundable deposit of £222,000 from Atlas ensured the December wages were paid.
While the £900,000-plus payment will benefit some creditors, others will face losses. Close Invoice Finance Limited, owed over £170,000, is expected to be paid in full. Funding Circle Limited is owed £57,000, while HM Revenue and Customs, classified as a secondary preferential creditor, has submitted a claim of £510,000.
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Unsecured creditors are unlikely to receive a dividend, with 42 claims totalling £131,492 listed at Companies House. Noteworthy unsecured claims include £53.65 from Aberdeen printing firm Langstane Press and £25,140 from legal firm Aberdein Considine & Company. Investor loans collectively exceed £735,000.
The administrators’ report concluded: “Based on information currently available, the joint administrators think that the company has insufficient property to enable a distribution to be made to unsecured creditors, except potentially from the prescribed part if funds allow.”
Separately, Grampian Packaging Services, a Dyce-based subsidiary of CSG not in administration, which supplies packaging materials, was sold to Glasgow-based UPAC Group for £1, ensuring its continuation as a going concern.
