The Statement of Affairs filed at Companies House said that sales were below expectations, leading to funding shortfalls. After its IPO it burnt through £17.7m of cash and £4m of secured debt from Vodafone.
In 2013, Outsourcery reported a net loss of £9.12 million. In 2014 its net losses were £7.6 million and in 2015 £6.22 million. So while it seemed to be getting better it was still losing money hand over fist.
Co-CEOs at Outsourcery, Piers Linney and Simon Newton, managed to attract interest from 12 bidders before it was sold to GCI Telecom for £4m. This included £3.73 million for goodwill and nearly £270,000 for equipment. About 100 staff transferred to the new owners.
Outsourcery Plc, Outsourcery Group Ltd, Outsourcery Holding and Outsourcery Holdings were placed into administration. Outsourcery US and Outsourcery Mobile were not but these were largely dormant and the only assets were intra-company receivables.
Post sale, Vodafone was paid £1.8 million and then another £1.5 million toward its £5 million secured debt and £300,000 in accrued interest; Etive was owed £1 million plus £8,000 in interest.
Creditors’ claims are anticipated to be in the region of £1.9 million including £424,637 owed to Hewlett Packard International Bank, £165,244 to Fasthosts, £134,273 to Telecity and £112,937 to Bytes Software Services.
It was all a complete disaster and a cautionary tale for anyone who thinks that the word “cloud” is a license to print money.