Administrators seeking buyer for vaping firm
Fri, 25 Nov 2022 | ADMINISTRATION
A buyer is being sought for Swansea-based vaping business Lumo Liquids Ltd after it entered administration. The company, incorporated in 2014, manufactures and sells a wide variety of e-liquid vaping products.
Its focus is on e-liquids (mixing, filling and packing e-liquid bottles, creating white label e-liquids, vape brands), nicotine services (mixing diluted nicotine solutions, mixing nicotine salt solutions, mixing bulk e-liquids) and POD filling (filling and packing vape devices, cartridges and PODs).
The company had experienced a sustained period of significant growth, building a portfolio of well-known vaping brands, modern production lines, blue chip customers (including British American Tobacco) and proprietary/in house developed product formulas.
However, after two of the firm’s key customers opted to move manufacturing and supply chains into mainland Europe, the company lost contracts representing over 85 per cent of its revenues. These lost sales could not be replaced quickly enough to offset trading losses, prompting Lumo Liquids’ directors to appoint administrators in order to conduct a sale of the business.
Mark Boughey and Conrad Pearson of Mazars have been appointed as joint administrators and the company will continue to trade while a buyer is sought for all or part of its business and assets.
Joint administrator Mark Boughey commented: "The core business, strong brands and production facilities are likely to be attractive to competitors and other interested parties.”
"Accordingly, we continue to trade the business and we are actively seeking a buyer for all or part of the company’s business and assets."
In its unaudited financial accounts for the year ending December 31 2021, Lumo Liquids’ fixed and current assets were each valued at slightly under £1.1 million, with the firm’s net assets amounting to £1.4 million.
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