NCSS was losing up to $3 million a year

National PC repairer NCSS Maintenance Services has gone into liquidation with administrators revealing the company was losing up to $3 million a year before it went under.

The company incurred accumulated losses of $8 million over the past three financial years, administrator Michael Smith of Smith Hancock revealed in a report to creditors released last week.

Revenue fell from approximately $25.8 million in the 2012 financial year to $16.7 million in the 2013 financial year. NCSS recorded a net loss of approximately $3 million in both years and a loss of $2.8 million for the 2014 financial year.

The bottom line was being hurt by decreasing profit margins on equipment repair for HP, directors told administrators. In some cases the cost of travelling to remote locations outweighed the revenue.

Revenue was also impacted by the loss of several major contracts worth approximately $2.5 million over the last two years.

Adding to cash pressure, NCSS has also been involved in a dispute over payments from the sale of the entertainment and leisure part of the business. A delay in payment of approximately $300,000 for a separate one-off project also contributed to a working capital shortfall, the report to creditors states.

NCSS went into voluntary administration on 27 August, with partner at administrator Smith Hancock Peter Hillig previously stating at a creditors meeting that approximately $3.6 million was owed to "agents of the company".

Receivers have since reported that claims by employees total approximately $1 million. The claims range from less than $300 to more than $100,000 in one case. The majority of claims are less than $20,000.

According a previous advertisement for the sale of the business, NCSS has approximately 80 employees and more than 90 service agents.

Receivers list plant and equipment at locations in Prospect in New South Wales and Morningside, Garbutt and Southport in Queensland.

The realisable amounts for the plant and equipment value, sundry debtors and some other details have been withheld by the receivers.

CRN has contacted receivers but was not able to find out more by the time of publication.