Creditors of a north Wales in-administration marina are facing a shortfall of £1.5m, joint administrators have confirmed. Port Dinorwic Marina in Y Felinheli, which is part of the Marine and Property Group (MPG), entered administration in June and is now up for sale.
Simon Monks, Nicola Clark, and Colin Haig, of accountancy firm Azets, were appointed joint administrators of Port Dinorwic Marina, which continues to trade until a potential buyer is found. The marina has experienced financial difficulties in recent months and is one of a number of subsidiary firms under the holding company currently in administration, alongside Cardiff Marine Services, Aberystwyth Marina, and Burry Port Marina.
Bayscape Limited, which manages a block of luxury apartments next to Cardiff marina and is owned by the director of MPG Chris Odling-Smee, was put into receivership in May. MPG itself was the first to go into administration in April, while its separate subsidiary businesses continued to trade.
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Now, the joint administrators for Port Dinorwic Marina have published a report via Companies House, showing that it owes around £2.7m to secured creditor Shawbrook Bank - which put the business into administration. The report estimates that Port Dinorwic owes £1.5m to creditors, including £286,955 owed to HMRC and £868,301 to a number of unsecured creditors.
The business’s main asset is its freehold interest in the marina, occupying a 9.16 acre site, which it acquired at a cost of £2.2m in 2019. The total valuation of all fixed assets at Port Dinorwic are estimated at £2.6m.
If the site is sold for valuation, then Shawbrook Bank, as the primary secured creditor, could get most of its money back. However, other creditors are looking at a £1.5m shortfall.
The administrators are hopeful a sale of the business can be completed by the end of the year, with Shawbrook Bank agreeing to provide £35,000 in short-term funding to address trading cash flow issues, pay staff wage arrears, and carry out remedial work while a potential buyer is found. A recently-launched community enterprise, Menter Felinheli, has already expressed an interest in buying the marina.
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Concerns over MPG’s financial situation have been ongoing amid reports of staff not being paid in full or on time. Earlier this year, Mr Odling-Smee spoke of plans to raise £35m from a new corporate bond to address cash flow issues in the business.
He later told BusinessLive that the administration of MPG was a protective measure to support its refinancing plans which had been delayed, adding that he was assisting the administration process in the hope of raising said corporate bond to exit the insolvency process.
However, the joint administrators’ report now confirms that the bond failed to materialise ahead of a winding-up hearing by HMRC against one of the group’s subsidiaries, Cardiff Marine Services.
A separate joint administrators' report published for Burry Port Marina also shows the Carmarthenshire port, which can hold up to 450 year-round berths, only had 50 berths occupied at the beginning of June. According to accounts made up to December 2021, the harbour has historically been loss making at an operating level, when it reportedly made an operating profit of £164,494. What is owed to creditors at Burry Port is currently unknown.
The harbour is part-leased and part-share owned by MPG and Carmarthenshire County Council. The lease with the council has approximately 145 years remaining. The report showed that, as part of the share transaction, the council provided Burry Port Marina with £440,000 to purchase a dredging boat. It is also providing £20,000 a month to keep the harbour afloat while in administration.
The joint administrators said they plan to continue trading Burry Port Marina until a suitable buyer or other solution is found, with Mr Odling-Smee identified as one potential acquirer of Burry Port.
They added that they are currently considering the “viability” of Mr Odling-Smee’s offer with a further update in the next report to creditors. Considerations are also being made for any other potential buyers.
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