The Somerset-based company entered into the CVA at a meeting of creditors on 14 October, when the motion was overwhelmingly accepted by 389,577 votes to 2,903.

According to a letter from BDO's Simon Girling, who will oversee the CVA, sent prior to the meeting of creditors, a five-year proposal was put in place. As well as receiving 28p in the pound, a 50% share of any increase in the company's net profit "above the directors' current estimates" will also be paid.

Girling said that the company has experienced losses in two of the last three financial years which, coupled with consolidation and rationalisation of the industry, culminated in "significant cash flow problems".

Turnover dropped from £1.8m to June 2008, to £1.4m to June 2010, while an operating profit of £26,000 fell to a £117,000 loss.

The company had a £485,917 shortfall to its unsecured creditors, with a further £705,497 owed to secured creditors.