Hutchinson Networks goes into administration


IT network solutions provider Hutchinson Networks Limited has gone into administration.

Based in Edinburgh with 109 employees and established in 2011, Hutchinson Networks also offers a secure, in-house developed multi-cloud platform and a network operation centre.

Blair Nimmo and Alistair McAlinden of KPMG LLP were appointed Joint Administrators of Hutchinson Networks Limited on 13 May 2019.

The company experienced a period of rapid growth as a result of significant new contract wins over the past two years, and forecast this trajectory to continue during 2019 and beyond. Unfortunately, during the second half of 2018, certain contract delays coupled with the mixture of work secured, meant the company generated lower gross margins than forecast, resulting in monthly losses and cashflow pressures.

The business sought to alleviate this via cost control measures and launched a process to secure additional investment which would support the next phase of growth and further stabilise finances. Unfortunately, this proved unsuccessful and with no other sources of funding available, the directors resolved to place the company into administration.

Upon appointment, Joint Administrators had no other option than to make 94 of the company’s 109 employees redundant with immediate effect.  The 15 remaining employees have been retained to help the administrators to continue trade the network operation centre and provide multi-cloud platform services to customers, whilst the Joint Administrators explore a sale of the business and assets.

Blair Nimmo, Joint Administrator and UK Head of Restructuring at KPMG, said:

“Hutchinson Networks was a rising star in global IT network deployment. It had invested heavily for future growth and secured attractive contracts for the second half of 2019. Despite the exhaustive actions of the directors to increase sales, reduce costs and attract new investment, the business was unable to continue trading.

“We are exploring a sale of the business and assets and would encourage any interested parties to contact us as soon as possible. 

“Additionally, we are working with Scottish Enterprise and Skills Development Scotland to provide a full range of support to the company’s employees throughout this process.”

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