C
CorkBoss2010
Guest
Hi,
I have a reasonably successful business that seems to be weathering the recession not too badly.
However I have a local competitor that has decided to deliberately undercut any quote we do as their strategy to fight back. I know from my experience of what their running costs/wages etc... that the rates that they are charging are simply not viable. e.g a Certain job, we quoted €450, they quoted €70 !!! The materials involved alone would have been over €200, never mind any labour/travel considerations....and a little profit.
This evening I decided to look at their accounts via Company Registration Office and Solo Check and according to their latest submissions, they are trading at significant losses. Their auditor even makes the point in their notes of this.
"The net assets are less than half the amount of it's called up share capital...in our opinion there may exist situation may arise under section (40)1 of companies act 1983, that requires the convening of a extraordinary general meeting"
It goes on to quote the loss incurred during the year and that the liabilities exceed it's assets by a very large sum.
The auditors state that they "have significant doubt over the companies ability to operate as a going concern."
This company is a company owned by someone (managed by someone else) who is a shareholder in several other businesses. It would be my opinion that these other businesses would be very profitable.
It appears to me that the owner of my competition is deliberately operating this business at a loss (and selling at a loss), but it is being subsidised by the other profitable businesses.
The auditors state in their notes, that my competitior is completely reliant on the goodwill of the major shareholder (and banks) to keep trading.
Is there anything that I can do about this? I thought there was rules about an insolvent business knowingly trading at a loss?
Some of their quotes are ridiculous, and they make my business look disreputable if we are quoted against each other....it appears to be their tactic of choice at the moment.
Advice welcome.
I have a reasonably successful business that seems to be weathering the recession not too badly.
However I have a local competitor that has decided to deliberately undercut any quote we do as their strategy to fight back. I know from my experience of what their running costs/wages etc... that the rates that they are charging are simply not viable. e.g a Certain job, we quoted €450, they quoted €70 !!! The materials involved alone would have been over €200, never mind any labour/travel considerations....and a little profit.
This evening I decided to look at their accounts via Company Registration Office and Solo Check and according to their latest submissions, they are trading at significant losses. Their auditor even makes the point in their notes of this.
"The net assets are less than half the amount of it's called up share capital...in our opinion there may exist situation may arise under section (40)1 of companies act 1983, that requires the convening of a extraordinary general meeting"
It goes on to quote the loss incurred during the year and that the liabilities exceed it's assets by a very large sum.
The auditors state that they "have significant doubt over the companies ability to operate as a going concern."
This company is a company owned by someone (managed by someone else) who is a shareholder in several other businesses. It would be my opinion that these other businesses would be very profitable.
It appears to me that the owner of my competition is deliberately operating this business at a loss (and selling at a loss), but it is being subsidised by the other profitable businesses.
The auditors state in their notes, that my competitior is completely reliant on the goodwill of the major shareholder (and banks) to keep trading.
Is there anything that I can do about this? I thought there was rules about an insolvent business knowingly trading at a loss?
Some of their quotes are ridiculous, and they make my business look disreputable if we are quoted against each other....it appears to be their tactic of choice at the moment.
Advice welcome.