Troubled reseller sees debts spiral

Wakefield-based reseller Productivity Computer Solutions (PCS) has entered administration with debts in the region of£1.2m.

Administrator Tait Walker was appointed on 15 October.

It is believed the IBM and Sun reseller has been in financial difficulty for the past five years.

Despite a turnover of £13.7m in 2002, pre-tax losses hit £773,000. However, in 2004 it appeared the firm had gained control of its debts when losses were reduced. But only last year they had more than quadrupled again to £300,000 while annual turnover nearly halved to £8m.

“This has been on the cards for a long time,” a source close to the company revealed.

“PCS is not your average reseller. It is a business with a lot of expertise and experience in what it does, however, it has been haemorrhaging money for some time and has ultimately paid the price,” added the source.

Representatives from PCS and its administrators were unavailable for comment.