paulhynes Posted September 18, 2019 Share Posted September 18, 2019 Hi all. Mark the office administrator for Paul Hynes Design LTD here. Just letting you know that for the last two days our email systems have not been working due to issue with the host’s server. If you wish to contact us our alternative email is [email protected]. This email is a backup email account so please be aware that it is not usually monitored continually, but will be until our usual email systems are back in place. AnotherSpin 1 Design and manufacture of high performance power supplies Link to comment
Popular Post paulhynes Posted May 14, 2020 Popular Post Share Posted May 14, 2020 Hi Geoff, Stephen, the Paul Hynes Design Ltd Production Manager has just called me to say you have posted about my e-mail on Audiophile Style forum. Unfortunately this thread that you have posted in has historically referred to both my old custom build service (now closed to new orders) and also matters related to Paul Hynes Design Ltd production, so there may be some confusion between the two. Stephen has asked me to clarify on the thread that he is still operational and progressing PHD Ltd orders at the PHD Ltd premises. To further clarify, PHD Ltd is not directly involved with my old custom build service although they will be using their spare production capacity to help me progress the outstanding custom build orders once the Covid-19 lockdown restrictions are relaxed and the other furloughed staff return to work at their premises. As soon as it is deemed safe I will be back at the PHD Ltd premises to progress the outstanding custom build service orders with their help. Regards Paul Superdad and flkin 2 Design and manufacture of high performance power supplies Link to comment
Popular Post paulhynes Posted May 14, 2020 Popular Post Share Posted May 14, 2020 Hi Alex, Thank you for your kind concern. These times are indeed worrying. I hope you and your family and all the Audiophile Style members remain safe from Covid-19. Congratulations are due to you, and John, on your success with the EtherREGEN. True dedication during the development time and good work! All the best. Paul Superdad and beautiful music 1 1 Design and manufacture of high performance power supplies Link to comment
paulhynes Posted May 15, 2020 Share Posted May 15, 2020 Hi Geoff, No need to get your post deleted. It would leave Alex and I posting out of context. Regards Paul Design and manufacture of high performance power supplies Link to comment
Popular Post paulhynes Posted July 10, 2020 Popular Post Share Posted July 10, 2020 Scotland has its own Parliament with devolved powers to control much of how Scotland is governed and it is currently applying lockdown relaxation measures at a slower pace than England. So far our island has had no confirmed cases of Covid-19 infections and this has mainly been due to the ban on incoming non essential travel, with the exception being for essential key workers and food supplies. Travel restrictions are now beginning to be relaxed, which is quite worrying, as this may lead to Covid-19 reaching the island and many of the islanders are considered to be high risk due to age. If cases of infection occur lockdown will be re-instated here rapidly. With respect to activity at PHD Ltd premises and my progressing the Custom build schedule :- I am currently conferring with Stephen at PHD Ltd with regard to returning to the workshop in the near future. At present Stephen is working alone at the premises and has been working solidly without a break since the lockdown began. He is looking forward to having his production staff back in the workshop so he can take a much deserved holiday. Currently the work areas at the premises are not conducive to having all the staff in occupation at the same time with adequate social distancing, so, to comply with regulations, Stephen will be re-organising the work areas as best he can and he will likely stagger staff working periods where possible to make the best use of the workshop facilities. Orders for PPE are starting to arrive in preparation for the return to work. A re-organisation of the workshop to place my custom build work in a small office unit was planned back in March but Covid lockdown delayed this and the re-fit still has to be finished before I can continue with my custom build schedule. This will take my priority on returning to the workshop. Once completed, I am looking forward to moving the schedule forward again, hopefully without interruption this time! spotforscott, k27R, Adyc and 5 others 7 1 Design and manufacture of high performance power supplies Link to comment
Popular Post paulhynes Posted July 11, 2020 Popular Post Share Posted July 11, 2020 Hi Alan, My post was in response to k27R requesting an update on the custom build service and to auricgoldfinger directing him to e-mail me. I concluded it was time to provide another update, and to save the time involved with individual e-mails, I decided that, as most of the custom build service participants reside on this forum, the update would be more efficient placed here. I included an update on the PHD Ltd premises as this is where my workspace is now located and the effects of Covid-19 lockdown activity there are relevant. I take your point about fast order shipment and would, of course, wish PHD Ltd could do things more quickly. It was originally planned to have an online shop for PHD Ltd but when the EU development funding package for this project collapsed after the Brexit vote, and alternative funding was not available, the plan had to be re-organised. I took a leaf out of Roy Gandy’s (Rega Research) original trading terms back in the 1970s/1980s, where a fixed production schedule was instigated and customers booked their purchase and paid in advance to provide the trading cash flow as this seemed like the only solution to get the ball rolling. Unfortunately, with popular products, this can create expanding lead times. I guess the modern trend for instant gratification renders this trading model rather old fashioned. That said many customers have accepted this and it has worked well for cash flow. This has led to a gradual expansion with more local employment occurring in an area designated as economically deprived, which was the project target, and also the introduction of new products to the PHD Ltd range for the benefit of customers wanting to use my power supply designs in their systems. Covid-19 has applied the brakes somewhat with the lockdown regulations, and I have the greatest respect for Stephen and his continued efforts to keep the ball rolling under restricted operating conditions. The plan is still to launch an on line shop in the near future but it will have to await the catch up after the Covid delays to allow build for stock to commence. Then, as long as an item is in stock customers will be able to order with shipment occurring within a couple of trading days. I am told there is no such thing as a free lunch, and I guess this is likely to apply to the online shop where it will be logistically difficult to provide all the options currently available, due to lack of time and funding, so the range will probably be reduced to a few popular options but at least they will be readily available. Alan, I have to say that you have been very supportive along the way, which I do appreciate, and I have certainly not taken any offence about your constructive comments. In fact, if I lived in London and Covid was not around, I would happily buy you a beer. As it happens, I do listen to constructive comments by customers and try to incorporate useful suggestions into future plans where possible. Hello again Johnseye, It would appear that USPS service is variable from ok to very slow. The Royal Mail small packet service was chosen for shipping back in 2017 just after the launch of the SR4 when customers were complaining about the cost of using services via UPS, DHL and Fedex, as the Royal mail service was a much lower cost. I would advise anyone who does not want to await the Royal Mail/ USPS route to ask Stephen for a faster shipping method. This will cost more of course. BigAlMc, HeeBroG and lucretius 1 1 1 Design and manufacture of high performance power supplies Link to comment
Popular Post paulhynes Posted July 12, 2020 Popular Post Share Posted July 12, 2020 Hi Alan, You will have to get a permit from South Uists Estates to do any stalking on the island and you will need your passport to enter The Independent State of South Uist. I guess I could put in a good word for you once Covid-19 is under control. South Uist Estates is owned by the local residents and consists of around half of the Isle of Benbecula, the Isle of South Uist and the Isle of Eriskay (made famous in the film “Whiskey Galore”). With your ancestry I suspect you already know that we are on the outer rim of the known universe. Actually several customers have made the trek here and combined a visit to say hello, pick up a power supply and have a holiday in this beautiful wilderness area. One regular visitor from Germany has become a good friend. Unfortunately, I heard on the local grapevine that his booking for this year’s accommodation was cancelled due to the CV lockdown, so maybe next year. Regarding the pesky questions about power supplies, you do realise that if I divulge the secret sauce to you under the influence of alcohol, the Wicker Man ceremony will have to be re-instated. Unfortunately regarding the beer there are no public houses within the Estate lands, other than AM Politician on Eriskay, and I have not been there for years as the beer was not to my taste (God I miss real Ale). The nearest one with real ale that I know of is on the North West side of North Uist, which is quite a trek from here, and the drink drive laws in Scotland are very stringent so the driver would not be able to partake of a pint there and return the same day. Seriously though, if you are likely to be in the area, do get in touch, give a little notice, and I will procure some bottles of decent ale for the occasion. Regards, Paul Hi Johnseye, We are currently safe and well over here, thank you. I am seeing some bad news about rapid infection increases across the USA at present. I hope you, your family and the other forum members can remain safe through this dangerous Pandemic. Regards, Paul flkin, lucretius, auricgoldfinger and 2 others 3 2 Design and manufacture of high performance power supplies Link to comment
Popular Post paulhynes Posted July 12, 2020 Popular Post Share Posted July 12, 2020 Hi R1200CL, The voltage regulators used in the SR range of power supplies are fabricated from discrete components rather than integrated circuit voltage regulators as this provides direct access to all circuit nodes to allow adjustment of the operating parameters of every stage of the regulator circuitry to optimise electrical performance. This also allows the T upgrade option to be applied, which is not possible with typical three terminal integrated circuit regulator designs as there is no external access to internal circuitry. The T designation (nicknamed Turbo) refers to an add-on module to the main regulator module. To explain the reason for the T module in more depth, the high power regulator circuitry can be viewed as a high power output stage with a low power control circuit. In the SR range the control circuit has a separate higher voltage supply rail from the lower voltage output stage supply rail and historically this control circuit supply rail was just a basic well-smoothed unregulated supply rail. The T module addition is a separate lower power voltage regulator version of the standard regulator module and this is fitted to the control circuit of the main high power voltage regulator. This provides a very clean well regulated supply to the high power regulator control circuitry reducing noise and any dynamic interaction to very low levels and increasing the supply line rejection considerably. One thing I need to look into is your inclusion of “DR” in your request for clarity of application on all options of the SR range. Historically I applied the term DR to Double Regulated (two regulators in cascade) options in the Custom build schedule and it would appear that it has now been applied to Dual (two) regulated supplies, which could cause some confusion. I will inform PHD Ltd that this need changing to a less conflicting title next time someone is adjusting the website data. To be clear the T option can now be fitted to the latest standard SR4, SR5 and SR7 high power regulator modules in the F (fixed output voltage), S (switched output voltage) and two or more rail versions. I hope this clarifies things sufficiently for you. If not let me know. Regards, Paul Gavin1977, str-1, internethandle and 3 others 1 2 3 Design and manufacture of high performance power supplies Link to comment
paulhynes Posted July 14, 2020 Share Posted July 14, 2020 Hi R1200CL Now you are entering a rather grey area, as I am not accepting new custom build orders, although it is possible to take over an existing order in the custom build schedule when owners of these orders decide they are no longer required, either because they have changed their system so radically that the build specification is obsolete or they just do not want to wait any longer in the queue. It should be noted that the licence issued to PHD Ltd does not currently include DR (double regulated) supplies. As far as custom build application options are concerned, for those who have requested this, I have redesigned the SR5 and SR7 DR printed circuit board layouts and had some FR4 and Teflon printed circuit boards manufactured that allow all the new upgrade options including Electronic Overload Protection (both electrical and thermal), and the addition of the Turbo Module (again both FR4 and Teflon) to each voltage regulator in the DR configuration, and the soft start module to limit inrush current for use in the SR7 with larger VA rated transformers and multiple transformer options with a collectively large VA rating. The SR4 is exclusively licenced to PHD Ltd and not included in the custom build schedule so only the options offered by PHD Ltd apply with the SR4. The Custom build SR5 mains transformer is limited to 160VA due to space considerations within its chassis and the soft start module is not required for this power supply, but the other options listed above can be applied to the custom build SR5 and all the above listed options can be applied to the custom build SR7. There is an extra thermal overhead with the DR modules due to the serial connection of the two main regulator circuits and for this reason I tend to recommend fixed voltage module versions although there is provision on the boards to fit the 4 way selector switch used in the PHD Ltd SR4 and SR5 designs with the proviso that people sensibly reduce the load current drawn from the output at lower voltage settings to avoid thermal overload. DR Double Regulated can be fitted to custom build MR Multirail supplies. You are correct that the single rail SR7T with DR Double Regulation is the best of the range especially if fabricated on Teflon boards with Vishay Z-foil resistors. R1200CL 1 Design and manufacture of high performance power supplies Link to comment
Popular Post paulhynes Posted August 28, 2020 Popular Post Share Posted August 28, 2020 Hi Geoff, I have been back in the office since Wednesday. It was stacked high with boxes and equipment which I have temporarily moved to the main reception office while I get the workbenches and storage shelves organised. Next week once the work benches have been assembled I will be installing all my equipment and then there is quite a lot of admin to get up to date with. I also have to build and electrically verify the new DR regulator module printed circuit board with the Turbo option on both of the DR regulators. Once this verification is done the turbo upgrade option can be applied to any outstanding DR power supply orders if required. My best guess for restarting the custom build schedule, assuming we do not end up back in Covid-19 lockdown again, is the following week, with build 20. Regards Paul k27R, Exocer, auricgoldfinger and 2 others 3 2 Design and manufacture of high performance power supplies Link to comment
paulhynes Posted September 29, 2020 Share Posted September 29, 2020 I spoke too soon regarding the return of Covid-19 lockdown. The news from around the world shows an alarming rapid increase in infections. I guess this was inevitable with people assuming they could return to normal life without the safety net of a proven working vaccine. We all need to consider carefully how we conduct our daily activities and to take steps to avoid infection if we are going to halt the spread of Covid-19. The Isle of South Uist had fared very well compared to the rest of the world as all unnecessary travel between the islands and the mainland was banned through the first wave of covid-19 infections. Unfortunately against the wishes of many residents here the restrictions were lifted in August and the influx of tourists has now introduced Covid-19 to the island. At the beginning of last week there was an NHS notification of three confirmed covid-19 infection cases in South Uist. By Saturday the number had risen to seven and last night on the BBC Scotland news the number had risen to seventeen with location information centred around Daliburgh a mile away from where we live. The last time I noticed the island population was circa 1,800 and to put this into perspective this is the equivalent of 944 infections per 100,000 of population, which is way ahead of the proportional infections currently seen elsewhere in the UK. In view of this devastating news, and because it is impossible to guarantee safe use of the communal areas at the workshop, PHD Ltd has reverted back to pre lockdown release operation. Stephen and his assistant are alternating working days to keep PHD Ltd production running. The rest of the PHD Ltd staff are isolating back at home, and I am also now back at home isolating and shielding disabled family members. Unfortunately this means that my custom build schedule is back on hold until it is safe to return to the workshop. Sorry to be the bearer of such bad tidings. Regards Paul Design and manufacture of high performance power supplies Link to comment
paulhynes Posted December 18, 2020 Share Posted December 18, 2020 Actually the custom queue is not yet moving as build 18 was placed on hold while I upgraded the 3A modules to 6A modules. By the time I had finished building 18 I had the double health issues at the beginning of the year and just as I was returning to the workshop the covid lockdown was instigated. I still had to put 18 through the soak test and make the DC leads. Fortunately Stephen at PHD Ltd recently volunteered to make the DC leads as soon as he could make a time slot for me and I was then able to complete the soak test at home. I shipped 18 out as soon as I could. The build schedule is still in hibernation at present, but I will be back in the driving seat as soon as it is safe for me to attend the workshop. The Vaccine is the game changer that will help me get there. Unfortunately I have not had the covid vaccine yet, however, on Wednesday I had a flu vaccination which will hopefully help avoid complications, should covid find me this winter. I did ask the nurse about when the covid vaccine will be available here and she was unable to say but she did say that I would be contacted as soon as my time for vaccination arrived. I guess we (including me) will all have to be patient a little longer. So far we are OK, although there have been cases locally, and one person living in Lochboisdale was infected very recently by covid and failed to survive. This has caused considerable shock locally as we have a tight knit community on the island. I am very concerned that the distancing rules are to be relaxed for Christmas and people will be allowed to visit the island from the mainland. I hope this will not be a recipe for disaster, like the relaxation of rules on the mainland. All the best through Christmas and New Year and stay out of the way of covid. Regards Paul lucretius 1 Design and manufacture of high performance power supplies Link to comment
Popular Post paulhynes Posted January 8, 2021 Popular Post Share Posted January 8, 2021 Custom build schedule update. For most of 2020 I have been stuck in isolation to avoid the Covid-19 contagion. Currently another round of the contagion is rapidly spreading and it looks like lockdown will continue for a while. In the mean time several Covid Vaccines have now been approved for safe application and we are seeing the start of a massive inoculation program in the UK. The vaccine roll-out will take some time due to the scale of the program so it is likely that a few more months will pass before it is deemed safe to regain some sense of normality. It was my intention to get much of the custom build schedule backlog cleared this last year but lack of safe access to the workshop in Lochboisdale collapsed this plan. I have been feeling the same frustration as many of you who have been patiently awaiting the re-instatement of the custom build schedule. Last month, due to general uncertainty regarding the Covid-19 issue I decided to look into re-creating a small workshop at home. The only conceivable available space in the home for this purpose was a small store room which was packed almost to the ceiling with storage boxes. So I decided that over the Christmas period I would put this plan into action. The storage boxes are now scattered around the house and I am not popular at home at present because of this, but perseverance has created some space. I will have to assemble a couple of basic work benches for the computer systems, and a small assembly area for progressing the custom build orders. The workspace is rather limited but should be serviceable as a temporary measure until it is safe to return to the Lockboisdale workshop. Whilst the staff at the PHD Ltd Lochboisdale workshop were still on their Christmas/New Year holiday break, I collected all my computer equipment and test equipment ready for installation in my new home workshop. I also collected enough materials stock from my custom build materials store in Lochboisdale to get the ball rolling on custom builds. Hopefully I will be able to fit all this in without too much space restriction. For those waiting in the custom build schedule I look forward to informing you when your order is completed and ready for shipment. All the best for the New Year. Regards, Paul auricgoldfinger, flkin, lucretius and 3 others 2 3 1 Design and manufacture of high performance power supplies Link to comment
Popular Post paulhynes Posted March 11, 2021 Popular Post Share Posted March 11, 2021 Hi Brian, The home workshop is now operational. Space is somewhat limited and I have no idea how I have managed to get so much equipment and materials in such a small space but it is workable for assembly work. Unfortunately there is no room to re-instate my machine shop here so I am having to rely on PHD Ltd to handle the machining requirements of the chassis etc. I am currently rebuilding a couple of SR7 repairs that have been hanging around since before the Covid lockdown and I started build 20 but have placed this on hold pending communication with the build owner. I have temporarily moved on to build 21 pending a reply from build 20. I have had my first Astra Zeneca Vaccination but the second one is not likely before May, so I will be working from home for a while. Working in such a small space has its limitations and I will be pleased to finally get safe access to the larger workshop facilities at PHD Ltd when the time comes. However progress is happening again and I am pleased about that. Your builds are not too far away now. I will let you know when they are under way. Thank you for being supportive and very patient with all the historical custom build schedule delays. Regards Paul austinpop, auricgoldfinger, flkin and 5 others 7 1 Design and manufacture of high performance power supplies Link to comment
paulhynes Posted May 11, 2021 Share Posted May 11, 2021 Unfortunately PHD Ltd is indeed now closed because of insolvency due to recent adverse trading conditions, leaving the company unable to cover this month’s operating costs. Because this is a limited company and it is a separate legal entity, I have to follow strict legal guidelines defined by Companies House and I am currently responsible for liaising with the insolvency practitioner appointed to close the company down and to provide all the information they require to complete their task. The Insolvency practitioner will, in due course, contact anyone with a creditor interest in the company. My custom build outstanding order schedule is not part of the insolvency proceedings as it was never incorporated into the PHD Ltd company. The only effect the PHD Ltd closure will have on the custom build schedule is absorbing my time over the next few weeks while I comply withy the statutory closure data provision requirements. Once clear of my legal obligations with the Insolvency Practitioner I will continue with the custom build schedule as soon as possible. My e-mail in box is rather overloaded at present so please do not expect an instant reply. I will answer the e-mail as soon as I can. I am sorry to be the bearer of such sad tidings. Regards Paul Design and manufacture of high performance power supplies Link to comment
Popular Post paulhynes Posted May 12, 2021 Popular Post Share Posted May 12, 2021 Hello Brian, Under the circumstances I will no longer have access to the new unit in Lochboisdale so I am returning the Custom Build stock and equipment back to my home address. I will have to remove an old large thermal store that is no longer used from the laundry room which will create space to store much of the custom build stock and equipment that was crowding me out in the storeroom. I should then have enough room to work on chassis safely and carefully. Hello Iving, I am pleased you like the SR7T. At this point in time I have only two priorities. Firstly, there is much work to complete preparing the documentary information requested by the Insolvency Practitioners. Secondly, I have to get the Custom Build schedule back on track and all orders completed. I currently have no plans to make the standard SR4, SR5 and SR7 product range I licensed to PHD Ltd available again but may reconsider this once I have completed the custom builds. I will attempt to get the website taken down as soon as I come up for air. It will demand some care as the last time the first employee of PHD Ltd removed the website it took all the e-mail addresses with it and caused chaos for a while. As I am not a website designer I will have to proceed with caution. Hello ASRMichael, Thank you for your suggestions. I have been notified by the Insolvency Practitioner that they will handle everything to do with the liquidation and I have to follow their instructions. I will contact the Insolvency Practitioner and clear this before posting their contact details as I do not want to pre-empt their process. I also will give them the AS forum thread link and they can post the contact details if they prefer to do it this way. Hello Alan, Very sad news and I wish it were different. Stephen has been first class since joining the company. Egill23, I will see if I can find details of the delivery issue when I am next in the office to access the computers. Hello Daryl, I am sorry you have been caught up with the closure of PHD Ltd. The sudden insolvency position only became apparent on 28th April. Prior to that date the company was able to pay bills and wages from cash flow as usual. The office manageress and I both spent much time looking for financial options to support the business until 4th May when a financial analysis highlighted the insolvent position. Alongside the search for funding I sought professional advice on how to deal with the situation and when it became clear that it would not be possible to find support funding I approached the Insolvency Practitioner for advice and was advised that, as the company was insolvent, the law states it must be liquidated. I am afraid this is not a façade and I do not make the laws in the UK but I must abide by them. The company laws in the USA may have different regulations but PHD Ltd is in the UK so the local laws apply. Once I was aware of the position of the company I closed the doors and instructed staff not to accept any more customer orders or add any more expenditure, in accordance with the insolvency regulations. I immediately followed his instructions and closed the company. I have checked the company bank account and your order payments to PHD Ltd were made before the liquidity situation became apparent. This means that you are now a creditor of the company within the liquidation proceedings. Unfortunately PHD Ltd is not allowed by law to give individual liquidation creditors priority so cannot issue a refund. Your details will be given to the liquidator and funds left after liquidation will be shared with the creditors. I am afraid this is entirely out of my hands. Regards Paul auricgoldfinger and mikicasellas 1 1 Design and manufacture of high performance power supplies Link to comment
paulhynes Posted May 17, 2021 Share Posted May 17, 2021 One of the documents I was asked to prepare by the Insolvency Practitioner is a brief history of the PHD Ltd company from early preparation onwards. I have not finished it yet but as this thread is rapidly turning into a witch hunt I might as well post a copy of the document as it covers the general details. I will also post a short explanation of why the company was closed. I have appointed a professional licensed Insolvency Practitioner rather than a quick fix, get you though the process without any hassles, fly by night operation, to ensure there is no impropriety in the proceedings. If any creditor has any questions about the closure you will need to address them to the Insolvency Practitioner once he has contacted you regarding the liquidation. Local employment project history. The local employment project started 5 years ago when I first contacted the local enterprise agencies for advice regarding setting up the project and for information about financial support packages. The project was initially envisaged as being either a workers cooperative of a community interest company. It was designed to be an autonomous manufacturing facility to help support local employment opportunities in an area designated as a deprived economic area. Two sources of support funding were identified, one being the Leader European fund and the other being the local community land owner Storas Uhibist. The proposal attracted in principal support up 50% of start up costs from each fund. Much preparation work was required to provide the documentation for the project plan. A series of meetings with the local enterprise agencies, Internet business advisors and a local accountant provided the guidance for preparing the business plan. I was advised that all expenses should be entered into the cash flow projections and this could include a basic remuneration for myself although it would likely have to be deferred until such time as the business sales revenue could support the realisation of the deferred earnings. The plan was proceeding well until the advent of the Brexit Referendum. The vote to leave the EU caused changes in the support qualifications for Leader funding and their proposed support level dropped from 50% down to 30%. This required a search to replace the lost 20% of the funding package and a rework of the business plan and cash flow projections. Then 2 months later Leader withdrew all support and the project finance package required reappraisal again. Not long after this Storas Uhibist also withdrew from the funding businesses as they were short on funds for local investment and with no support funding the project was on hold while other options were considered. It occurred to me that a revenue stream would help start the project on a smaller scale than originally envisaged and that a slow progressive expansion should be possible with sales revenue. So I decided to re-start my old custom build service to use some of my earnings from this to fund the production engineering of a product to start the revenue stream. I then designed the SR4 to provide the revenue stream for PHD Ltd. Premises were sought and a lease acquired two and a half years ago starting 01/12/2018. The office and workshop workstations were custom built to suit the production environment. Once the installation was completed an office administrator was employed early in 2019. At this point I was ready to set up either the workers cooperative or a community interest company but as I looked into this further I realised that it may be better to wait for additional staff to be employed first. The project needed a business account and as I had been advised that a limited company would be a suitable temporary vehicle initially the company Paul Hynes Design Ltd was formed with a view to converting it to a workers cooperative or a community interest company at a later date. At this point, because there were no management staff appointed I ended up becoming the director by default, but it was not my intention to become permanently embedded within the company. The company was intended to operate autonomously, as soon as suitable staff were employed, with me just providing technical advice. All through the preparation prior to forming the company I chose to defer reimbursement of setup expenses and wages and I also chose to defer my salary during the first company trading year to help the company cash flow remain positive. However I did draw some setup expenses in the first year but only having first checked the cash flow was sufficient to cover customer order materials costs and operating costs. In June 2019 Stephen who I knew from his work as assistant manager at the local coop food store had heard about the progression of the project from one of the part time staff and he expressed an interest in joining the company. As he was good with customers and had management experience I was keen to see him join the team and he proved to be first class as the production Manager. As the office administrator was not comfortable handling customer enquiries and sales, Stephen volunteered to take this task on board and proved excellent at this too. As Stephen progressed I recognised that he was eminently qualified to take an executive roll in the company and offered him the position of Managing Director and a shareholding in the company. This would suit me very well as I could then resign as a director. He was keen to pursue this but we were advised by the company accountant that the share value of the company was at the time unknown as the first year’s accounts were yet to be prepared to assess share value. The executive position was placed on hold until the share value was known. Unfortunately, due to covid related delays and some technical issues, the accounts were not ready until this year. Sales during 2020 were continuing well and I chose to reimburse some of my earlier deferred wages and salary but only after checking the cash flow prior to making a drawing. Cash flow can be variable for a variety of reasons so when informed that the cash flow was slow I reduced and then stopped reimbursing deferred wages/salary to ensure that operating costs and staff wages were covered. Sales over the last few months have been slowing and there are a number of cumulative reasons that can be fairly attributed to eventual seizure of the cash flow at the end of April. 1) Covid-19 initially kept many people isolated at home leading to greater interest in home entertainment, which resulted in steadily improving sales. This has been an ongoing situation with stop-start lockdowns occurring and with the advent of vaccine roll-out and the possibility of imminent lockdown relaxation and the imminent arrival of the summer season, many potential customers are likely thinking about taking a much needed holiday instead of spending their money on home entertainment. 2) Materials and electronic components have become harder to source which affects production schedules so stock levels had to be increased where possible to ensure can keep production schedule active. This higher level of stock holding costs considerably more money to support in the short term until supplies can resume a more normal availability. 3) Now that Brexit has been activated the delays with shipping to the EU have been discouraging customers from ordering and this has been a significant loss of revenue. 4) Increased activity in the power supply market by new and established businesses has likely reduced potential PHD Ltd sales. Paul lucretius 1 Design and manufacture of high performance power supplies Link to comment
paulhynes Posted May 17, 2021 Share Posted May 17, 2021 Why the company had to be closed. When it was apparent that the cash flow was not enough to pay all the wages on 25th of April, the office manageress offered to defer her wage until there were funds in the account and I deferred half my salary for the month until she had been paid. I never received the balance due to the company closure. The rest of the staff were paid as was the office manageress shortly afterwards. 28th April – Stephen informed me that sales had seriously slumped and with little working capital and virtually no access to finance, he was very concerned about the situation. Stephen also stated that as it was unpredictable how long the financial slump would last, both he and the office manageress were considering leaving the company if there was no prospect of wages the following month. 4th May – My e-mail to the office manageress :- I want to hold a management meeting early next week, either Monday 10th or Tuesday 11th, circa 1pm onwards at Yours and Stephens convenience, to assess the current PHD Ltd financial position and go through any options that appear viable. Having the meeting next week will give time to accumulate any relevant information we will require at the meeting. I will need details of the current financial position regarding cash in the bank and paypal accounts, as well as outstanding financial commitments on the day of the meeting. I will also need details of any options thought to be viable by you and Stephen by e-mail on Friday 7th May. Stephen raised some points in his last e-mail that I feel I answered sufficiently in my reply to his e-mail However there may be a number of issues that need clarification regarding the future of the business. I will expect a synopsis of any points he wishes to raise at the meeting by this coming Friday (7th) via e-mail, to allow myself time before the meeting to consider any subjects he wishes to discuss. If there are any problems regarding the scheduling of the meeting please advise me of a suitable alternative time. Regards Paul 4th May – I was informed by the office manageress that as there was only just over £400 in the company account, and direct debits were due for payment within 5 working days, there was no possibility of continuing without either additional sales or additional funding. She and Stephen both agreed that the company was unable to cover working, business and employment costs for the remaining month and that in their opinion the company was no longer viable. She also suggested a meeting immediately or at the latest the following day. Given this information, and that staff were already considering leaving, I also concluded that the company was insolvent and decided that it was more important to spend time seeking advice for possible solutions, or in the absence of a solution, advice on how the company should be closed to comply with company law, than have a meeting with no solutions on the table. I was able to get a telephone appointment with a professional licensed Insolvency Practitioner the following morning and after running through the situation I was advised that the company was insolvent and should cease trading with immediate effect. The Insolvency Practitioner duly sent the contract of engagement documents which I signed and returned. I was instructed that they would deal with everything regarding the company closure and my responsibility was only to provide whatever documentation and information they requested. I have asked the person handling the closure for permission to post a notice with their contact details on this forum thread as I do not want to pre-empt their procedures. She is away on business and not back in the office until Tuesday. If they are happy to allow the post then I will post the contact details as soon as I receive the permission. I also telephoned CMSCo accountants and informed them of the PHD Ltd insolvency and imminent liquidation. Paul lucretius 1 Design and manufacture of high performance power supplies Link to comment
paulhynes Posted May 17, 2021 Share Posted May 17, 2021 Two of the staff were furloughed early on in the pandemic. Just prior to closing the company, in view of the fact that furlough support was still in place, at least until the autumn, I suggested to the office manageress that I be placed on furlough, as an overhead saving measure. There was a question mark over whether that would be workable and it would not have saved anywhere near enough overhead on its own. Alongside this, in an effort to save the company, I also suggested that the staff seek enterprise agency support to take over the company, as this was the original plan anyway. I was happy to transfer ownership but after a staff meeting this suggestion was declined. Paul lucretius 1 Design and manufacture of high performance power supplies Link to comment
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