One of the largest tech companies in Cornwall has gone into voluntary liquidation.
Headforwards Group Limited, based at the Fibre Hub in Pool, near Camborne, entered into voluntary liquidation this month.
The outsource software development company, which at its peak employed more than 100 staff, had been at the vanguard of the tech sector in the county for the past 15 years.
Set up by Toby Parkins and Craig Girvan in 2011, Headforwards is no more. The decision to start insolvency proceedings was made on January 21.
Liquidators PKF Francis Clark LLP were appointed on January 28 with the decision to wind up the business following on February 3. The decision has now been made official on The Gazette and Companies House.
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Mr Parkins said the liquidation of the company had happened as a result of tough trading conditions from wider economic pressures and the end of some major contracts. He insisted the picture was not as gloomy as it appears.
He said: “As part of a carefully managed process, new businesses have been established by former senior Headforwards team members to continue providing clients with website hosting, cyber security, software project delivery and digital transformation services. These ventures ensure continuity of service and create future opportunities for employees.
“We decided to transfer parts of the business to these other entities. The Fibre Hub will be continuing and I will be taking full ownership of that.
“Other companies set up by staff at Headforwards such as Howell Technology Ltd – known as HowTech – have taken on some of the teams. The Microsoft consultation work we did is now run by Forerunner Digital while other teams have been transferred to clients.”
Mr Parkins said that the Headforwards Digital Academy will also continue with its activities being adopted by Tech Cornwall.
The entrepreneur confirmed that a small number of people had been made redundant as a result of Headforwards folding but said that a majority of them had since found employment in other businesses at the Fibre Hub.
He added: “All things last for however long. In essence, it has been quite a tough trading environment. All organisations get to a point where they have to go further or they can’t.
“It has been a hard decision to make. We wanted to try to ensure that as many parts of the organisation could move into the future.
“That’s what we have done. We were in a solvent position so everyone got paid or received their full redundancy package.”
Mr Parkins said that while his fellow co-director Mr Girvan is taking some time off for personal reasons, he will continue to run the Fibre Hub and is also looking to set up new finance technology (fintech) businesses.
“I’m glad we have enabled other businesses to be created by former Headforwards employees who have this ambition,” Mr Parkins added. “I’m pleased that new businesses are being set up and growing already.
“You have to see it as a transition. New businesses have been created and we also did pretty well in keeping as many jobs as possible.”
Mr Parkins said the difficult trading conditions had come as a result of challenges and uncertainties as a result of “global politics”.
“It is possible to run a business but it had become quite challenging,” he said. “Smaller businesses can find it easier to operate during tough times.”
He added: “This was a voluntary liquidation. It was well planned. We had been careful to have reserves in place to ensure everyone was paid and it was all above board. It was a responsible thing to do and we managed it in a way that covered the situation.”
Co-founder Craig Girvan added: “Our values at Headforwards have always been about looking after our people and our clients. That’s why we’ve worked closely with partners to safeguard the majority of jobs and ensure clients remain supported by experienced teams. This transition has been designed to provide stability and certainty for everyone involved.”
Looking to the future Mr Parkins said he will now have more time to focus on the Fibre Hub and help the tech community of Cornwall grow.
“I have a few ideas already on how to support it,” he said.
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