GI Signage, based at Millbrook, folded in June last year with debts of almost £1m

GI Signage, based at Cartland Commercial Premises in First Avenue, Millbrook, folded in June last year with debts of almost £1m.

Now business recovery experts Portland are about to conclude the administration process.

The engineering and highway maintenance company employed almost 30 people, all of whom are said to have found new jobs.

Following Portland’s involvement contracts GI Signage were working on were completed and funds owed to the company were recovered.

Other assets including plant and equipment worth £23,000 were sold on behalf of the administrators.

Portland says secured creditors were paid in full and other creditors such as suppliers and sub-contractors will receive some of their money.

GI Signage had a raft number of customers including Southampton City Council and national companies such as Balfour Beatty.

It ran into trouble after embarking on a huge expansion drive.

The administrator, Carl Faulds, said: “It’s a bit like buying a massive house when house prices are going up but not being able to pay the mortgage or the gas bill.

“A growing business needs more and more cashflow to pay the bigger bills.

“Unfortunately in the construction industry there can be a long delay between doing the work and getting paid.

“This in turn can affect your ability to pay your own bills on time, which puts real pressure on cashflow.”

Mr Faulds said HM Revenue and Customs tried to force the company into liquidation through the courts, but Portland stepped in and managed the closure “in a way that maximised the money realised for the creditors”.

Portland associate director Stewart Goldsmith added: “It’s very unfortunate that a successful company, which had been growing at a rapid rate, was forced to cease trading.

“GI Signage over-traded without the resources in place to meet the increase in costs at a time when there were delays in invoices being paid by customers.”