The Andover, Hampshire-based print business appointed Paul Goddard and Carl Jackson of Quantuma, who completed a pre-pack sale of the business to DMA Print, which was incorporated one week prior to the administration on 24 April.
Although DMA Print shares four directors with Advent Colour in Michael Ackerman, Adam De Marco, Alan De Marco and Daniel De Marco, Goddard stressed that the sale had been "to a new trading entity supported by a new external investor".
This investor, whose identity Goddard was unable to disclose prior to the publication of the Joint Administrators Proposals, acquired Advent Colour's ultimate parent company, Advent Digital Imaging.
DMA Print was then incorporated as a new subsidiary of Advent Digital Imaging and used as the acquisition vehicle to buy the trade and assets of Advent Colour in a deal that preserved the jobs of 68 staff at the firm.
"Advent Colour went into administration on 1 May and shortly after we affected a sale of the business as a going concern resulting in the jobs of 68 staff being saved," said Goddard.
"Essentially the sale was to a new trading entity supported by a new external investor. Existing management are involved in the business going forward [but] the sale was funded by unconnected third-party investment."
Goddard could not reveal the sale value of the business but said that there would "potentially" be some funds available for unsecured creditors. "That will largely depend on the recoveries from the invoice ledger and the final quantum of creditor claims," he added.
Advent Colour sales director Michael Ackerman declined to comment when contacted by PrintWeek.
Advent Colour's accounts for the year ended 31 March 2013, which were filed at Companies House on 30 December last year, reveal that the company made a net loss of £93,425 on its £8.2m annual turnover.
This, together with the fact its current liabilities exceeded its total assets by £493,851 caused the firm's auditors to note "the existence of a material uncertainty that may cast significant doubt about the company's ability to continue as a going concern".
Despite increasing turnover from £7.4m in 2012 to £8.2m in 2013 and gross profit from £1.8m to £2m, an almost £300,000 increase in administrative expenses meant that Advent's operating profit fell two-thirds year-on-year, from £196,699 to £63,452.
After interest and other charged were deducted this resulted in the company recording a pre-tax loss of £113,652 in 2013 (2012: £69,349 profit) while also slipping from a net profit of £53,260 in 2012 to a £93,425 loss.
The company owed £954,324 to trade creditors at the 31 March 2013, as well as £640,429 to its factoring account and £2m under hire purchase contracts. Bank overdrafts totalled £364,368 (up from £257,314 the year before).
The company was owed £1.5m by trade debtors and a further £316,197 by group undertakings.
Meanwhile, Advent Digital Imaging made a net loss of £117,428 on its £8.3m turnover for the year to 31 March 2013 and had net current liabilities in excess of £1m.
