Rymack Sign Solutions, which trades as PFI Group, has just filed its accounts for the period ending 30 December 2021. The accounts were filed late.
The accounts state that the financial viability of subsidiary Futurama is “under review”.
In his group strategic report CEO Darren McMurray said: “On 23 February four directors of a subsidiary, Futurama Limited, were removed from office.
“The financial viability of Futurama Limited is under review at the request of their funders, at the date of this report the results of this review are unknown.
“The board are implementing strategies and processes with the assistance of external consultants to minimise any impact this has on the group overall.”
The accounts were signed off on 27 April.
PFI Group has impaired the goodwill associated with its 2020 acquisition of Futurama by more than £2.28m while the value of stock at the business has been written down by £1.92m.
Futurama provides branded environments, signage, and maintenance services for a host of blue-chip clients including banks, retailers and car manufacturers. The firm’s accounts for the year to 29 December 2021 are currently flagged as overdue.
In pandemic-impacted calendar year 2020, Futurama’s sales fell from £13.35m to £9.45m, with pre-tax profits of £598,201 (2019: £873,793). It employed 47.
Barclays Bank has a fixed and floating charge over the business that was created on 6 March 2020.
Futurama acquired the Insignia Signs & Services brand in November 2020, followed by Creative Digital Images in January 2021, with the buys taking the firm into hospitality and retail point-of-sale products.
The four Futurama directors whose appointments were terminated are: CEO Marc Edwards, finance director Jo Evans, group operations director David Hurley, and director David Sharp.
None of the individuals had commented on the situation at the time of writing. Industry sources said they believed the four could be taking action for unfair dismissal.
Calls to Futurama’s phone numbers at its sites in Fareham and Bradford are diverting to a mobile number where the mailbox is full.
PFI Group/Rymack has made a string of acquisitions in recent years, most recently Gardners and Speedscreen, both out of administration.
A year ago Rymack Sign Solutions acquired Grafenia’s Manchester manufacturing wing in a solvent sale.
Rymack is due to make a £766,250 deferred payment related to that deal at the end of this month – the first of four annual instalments of that amount.
Rymack’s accounts for the period from 1 January 2021 to 30 December 2021 showed sales of £31.9m and an operating profit of nearly £2.5m.
The £4.2m in exceptional items propelled the business to a bottom-line loss of £1.96m compared to a profit of £1.43m in the prior period.
It had 310 employees, up from 204 in 2020.
In the prior year period, which was for 17 months, it had sales of £29.7m and made an operating profit of £1.37m.
The report states that cash balances at the end of the year were £1.13m “which is sufficient to fund future working capital requirements”.
Auditors at Xeinadin Audit drew attention to the financial review at Futurama but said: “We do not believe that this event casts significant doubt for the group to continue as a going concern.”
Xeinadin also noted that the prior year period had not been audited, and it had been unable to satisfy itself regarding stock valued at just under £1.48m held at 30 December 2021.
Rymack was previously exempt from audit as a small company.
On 7 June 2022 a share capital restructure took place at Rymack Sign Solutions. Its entire share capital was transferred to Touchwood Holdings, which became the ultimate parent company.
“The aim of the restructure was to enhance the financing within the group and to raise additional funding for further acquisitions,” Darren McMurray stated in the report.
Darren and Nicola McMurray are the joint shareholders of Touchwood Holdings.
Eight of Rymack Sign Solutions’ subsidiaries are exempt from audit because the parent company has provided a guarantee.
Printweek has contacted Darren McMurray for comment, but without response.
