Following the receipt of a winding-up petition and a walk-in possession distraint from the Inland Revenue, DHM made an application for court protection. BWC Business Solutions' David Cockshott was appointed administrator on 10 May.

The company is currently trading in administration, with Cockshott looking into possibility of a Company Voluntary Arrangement (CVA), for which it will need support from 75% of creditors.

"If when we've made a full assessment of the company's financial situation and future prospects it's apparent that a CVA isn't going to work, or the creditors aren't going to support it, then we have to look at selling the business and its assets as a going concern," said Cockshott.

It's believed that DHM's growth in recent years has been the major factor its current problems, the company reported a pre-tax profit of  115,569 on sales of 12m in its last audited accounts for 2002. The previous year it showed a pre-tax loss of 453,972 on 10.5m turnover. In 2002 it carried out a sale and leaseback deal on its building, which is believed to have facilitated the turnaround in its results.

"The desire amongst the management is to bring it back to a sustainable level circa 7m-8m, where they feel they can control it better," said Cockshott.

DHM has a stand at the Drupa used machinery pavilion, which is believed to have been pre-paid. According to Cockshott "We're getting positive feedback from the sales people and because its not costing the company significant money to continue its involvement at the show then that's going to continue."

Story by Darryl Danielli