Business process outsourcing firm Liberata IT Solutions, which is responsible for several large government contracts, has devoured Microsoft Gold partner Trinity Expert Systems (TES) in a pre-pack administration. This came after TES succumbed to pressing cash-flow issues. Coventry-based TES called in the receivers Deloitte …
Is this the same Liberata who screwed up the EMA (Educational Maintenance Allowance) so badly that it made the front page in the daily newspapers, top article in BBC online, and headline news on all TV channels after questions in parliament about why payments were late or even not paid at all?
ISTR that around that time they also lost at least 1 government contract on the basis of financial stability (or more like lack of).
So this means Trinity is pulling out of the Mid Market
This confirms that Trinity will be pulling out of the mid market IT Services solutions as I have thought for a number of months now!
Soon to be Ex Trinity client.....
'zombie' gobble...where will it all end?
Folly of acquiring businesses at inflated values and where continuity and integration fail to deliver sufficient profit to meet interest payments. Yet another 'zombie' business and the acquirer will need to have done their own homework soundly as their balance may well end up looking like that of TES Group, 'zombie' like.
Unsecured creditors will be miffed, make no mistake and sadly people will be shed despite any early promises. This is an inevitable consequence.
There is a very optimistic perspective throughout the article as it looks like Trinity were a failing business even before the Eurodata acquisition. It seems that purchase was a "double or quits" move by the management and lady luck did not favor them.
Their cash flow problems really stemmed from them taking on major work for a government client known for the needless complexity of their projects. They have thrown all their effort into trying to deliver the impossible and it has sunk them.
Another pending ex-client....
Trinity was put in to administration - misleading
Trinity was actually put in to administration and NOT
As the story says "saved from administration".
There is nothing positive about this transaction which is tarred by the history of terrible management.