Creditors meeting called for Moortown Construction

The former Moortown Construction business looks set to be voluntarily wound-up by its directors after facing a big tax demand for repayment of tax relief.

The company was part of the Bradford-based Moortown Group that continues to trade profitably and is unaffected by the move.

Mortown Construction completed all ongoing contracts earlier this year. Since then it has been renamed Exmoto and is no longer a subsidiary of the group.

Creditors of Exmoto are being invited to attend a meeting at KPMG’s offices in Leeds on 14 November to hear about plans to place the firm in voluntary liquidation brought about by a £1.37m demand from HMRC.

News of the plans emerged just after the Moortown Group posted results at Companies House showing a sharp rise in pre-tax profit from £800,000 to nearly £3.9m in the year ending May 2016 on turnover down 6% to £42m.

The latest group accounts reveal that Moortown Construction received a tax demand for repayment of tax relief claimed on several property and film investments between 2010 and 2012.

These state that due to the prior year tax changes, Moortown Construction had net liabilities on the balance sheet at the year-end of £1,139,041.

“The directors having carried out a review of the likely cash flows in Moortown Construction, consider that the company is unlikely to be able to pay its debts as they fall due because of the tax burden arising on the company and for that reason believe that in order for the accounts to show a fair and true view they should be prepared on a liquidation basis,” said the annual report.

A spokesperson for KPMG said: “Moortown Group is not affected and continues to trade. Exmoto (formerly Moortown Construction) completed all ongoing contracts in the year to May 2016 and subsequently ceased to trade. The shares in Moortown Construction were sold by Moortown Group in August 2016.

“At a meeting of the board of directors held on 1 November 2016 it was decided that the company, by reason of its liabilities, cannot continue its business. Accordingly, the director resolved to recommend to the company’s shareholders that the company be wound up voluntarily.

“Aiden McManus is the sole director and shareholder of Exmoto (formerly Moortown Construction). He is also a director of Moortown Group.”

from Construction Enquirer http://www.constructionenquirer.com/2016/11/09/creditors-meeting-called-for-moortown-construction/

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