Cornwall's tech giant, Headforwards, has shockingly entered voluntary liquidation, leaving many wondering about the future of the industry in the region. But what led to this decision?
The once-thriving software development company, Headforwards Group Limited, located at the Fibre Hub in Pool, has recently ceased operations. With over 100 employees at its peak, Headforwards was a cornerstone of Cornwall's tech sector for 15 years. Founded by Toby Parkins and Craig Girvan in 2011, the company's journey has come to an unexpected end.
Liquidators PKF Francis Clark LLP were appointed on January 28, and the decision to wind up the business was made official on February 3. The news has been published on The Gazette and Companies House, marking a significant moment for the local tech community.
Toby Parkins attributes the liquidation to challenging economic conditions and the conclusion of major contracts. However, he assures that the situation is not as dire as it seems. In a strategic move, former senior members of Headforwards have established new businesses to continue serving clients in website hosting, cybersecurity, software development, and digital transformation. These new ventures aim to maintain service continuity and create future prospects for employees.
But here's where it gets interesting: Parkins reveals that parts of the business have been transferred to these new entities. The Fibre Hub, for instance, will continue under Parkins' full ownership. Additionally, companies like Howell Technology Ltd (HowTech) have absorbed some teams, while Forerunner Digital now handles the Microsoft consultation work. Other teams have even been directly transferred to clients.
The Headforwards Digital Academy will also persist, with Tech Cornwall taking over its activities. Although a small number of employees were made redundant, most have found new roles within businesses at the Fibre Hub.
A thought-provoking quote: "All things last for however long. It's been a challenging trading environment, and we reached a point where we had to make a difficult decision." - Toby Parkins
Parkins further explains that the decision to liquidate was made while the company was still solvent, ensuring all employees were paid and received their full redundancy packages. His co-director, Craig Girvan, is taking a break for personal reasons, while Parkins himself will continue managing the Fibre Hub and explore new fintech ventures.
A controversial interpretation: Some might argue that the liquidation was a strategic move to adapt to a changing market, allowing for the creation of smaller, more agile businesses. Could this be a new trend in the tech industry?
Parkins expresses satisfaction with the transition, stating, "I'm glad we've empowered former employees to create new businesses, and I'm pleased to see them growing. It's a transition, and we've managed to preserve many jobs." He attributes the challenging conditions to global political uncertainties, making it harder for businesses to operate.
A bold statement: "This was a well-planned voluntary liquidation. We ensured everyone was taken care of and acted responsibly." - Toby Parkins
Co-founder Craig Girvan emphasizes Headforwards' commitment to its people and clients, stating that the transition was designed to protect jobs and maintain client support. As for the future, Parkins will dedicate more time to the Fibre Hub and fostering Cornwall's tech community.
The big question: Is this the end of an era for Cornwall's tech scene, or will it rise from the ashes? What do you think the future holds for the region's tech industry?
