CVA secures future for Your Space PLC

The future of serviced offices provider Your Space PLC, which has offices in Willenhall, in the Black Country, looks secure after the terms of a proposed company voluntary arrangement (CVA) were approved yesterday. 

Members and creditors of the Group, which includes Workspace (North West Limited) and Your Space (UK) Limited, overwhelmingly voted in favour of the CVA proposal.

Last month, the directors of the Group appointed Daniel Butters and Bill Dawson of business advisory firm Deloitte as Joint Nominees. They will now act as Joint Supervisors to the CVA.

As a result of the CVA proposal being approved a dividend of approximately 20p in the pound is payable to the unsecured creditors over a three year period, with the potential in year five for up to a further 40p in the pound payable if the Group meets certain trading targets. An additional capital dividend would be payable dependent on property realisations.

Your Space PLC is listed on the Alternative Investment Market (AIM), and provides serviced office space across the UK, including Belfast, Glasgow, Liverpool, London, Manchester and Newcastle. The company also develops property, both for sale and its own use.

As a result of a downturn in activity and asset values in the property market, the business faced challenges in securing increased occupancy rates to meet target levels, which ultimately had an adverse impact on trading performance.

Daniel Butters, partner in the Reorganisation Services practice at Deloitte, said: “This is good news for the group as the CVA allows the business to remain as a going concern and maintain its trade.  It offers job security to employees and certainty to its trading partners. 

“This growing use of CVAs demonstrates that in the appropriate situation administration can be avoided.” 

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