Post house completed pre-pack process to sell company back to investor Endless LLP

Evolutions

Evolutions has resurfaced after going into administration and completing a pre-pack sales process to its former investor Endless LLP, through its Enact Fund II.

Enact originally took over the business in January 2021. This time round, the US-based strikes, the commissioning slowdown, and labour market have been named as the drivers behind this move by the administrators, Interpath Advisory. 

These issues led the company to forecast needing ~£3.8m in additional funding from January 2024, and with this not forthcoming, Interpath Advisory was brought in to explore sale, investment and refinancing options. Three offers were received, and the Enact bid was accepted. The result is all 151 employees being moved over to the new company, as well as all kit, long-term property leases and related debt. In the administrator’s report from Interpath Advisory, the total liabilities listed amounted to just over £20 million. The majority of this is related to long-term property leases, rather than unpaid creditors. 

In the last reported accounts, for the year ending 31 December 2022, the company had turnover of £14.1 million. 

Remaining funds as well as debt from business rates and to HMRC remain with the original business and will not move across. It owed £661,812 to Westminster City Council in business rates. This restructure will allow for the investment that the company needed in January 2024. 

Following the process, Evolutions CEO Jonathon Kemp told Broadcast Tech that it is, “business as usual”, and all employees, freelancers, and suppliers have been and continue to be paid. Kemp also revealed that the post house has spoken to clients to explain the situation, and that no ongoing projects have been affected. He also said that the commissioning slowdown, US strikes and other issues that began in March last year are still ongoing, but pointed to the industry improving through the year, and noted that the facility is booked to “full capacity” for June. Recent productions Evolutions has worked on include Taskmaster, QI, and 24 Hours In Police Custody - as well as seven part natural history docuseries, Queens, which you can read more about here.