Kidwelly-based wireless broadband provider and supplier Dyfed Telecom Limited, which over the past few years has helped to connect various premises in rural Wales to broadband using a mix of mobile (EE powered 4G/5G), satellite (Starlink) and WiFi based solutions, has suffered a blow after HMRC filed a winding-up petition against the business.
For those who may be unfamiliar with this process, a Winding Up Petition (WUP) is a legal action that is usually taken by a creditor or creditors, which in this case appears to be the UK tax authority – HM Revenue and Customs (HMRC), against a company that owes them money. Such petitions are an expensive approach and so are usually only considered as a last resort (e.g. when all other approaches to settle a debt have failed).
According to The Gazette, the petition was presented to the High Court of Justice (Chancery Division) on 21st January 2025 by the Commissioners for HMRC. The case itself is expected to be heard at the Royal Courts of Justice in London on 5th March at 10:30am.
At the time of writing, it’s not clear what caused the situation, although it’s possible they could have been put under strain by the Welsh Government’s (WG) August 2024 suspension of the long-running Access Broadband Cymru (ABC) grant scheme (here). This offered funding to help rural homes get a faster broadband service installed in areas of slow connectivity.
The company’s most recent annual accounts, which cover the year to 30th September 2023 (published 1st Dec 2023) stated that the company had net liabilities of £28.5k (2021: £137.6k) and was continuing to “explore funding options to allow it to continue to meet its ongoing liabilities, including HMRC, and has the continued support of its directors and certain financial institutions“. But under the section for “Creditors: amounts falling due within one year“, there was a total of £1.193m listed. Sadly, these accounts are now quite old, and so we don’t know what the situation is today.
ISPreview has attempted to contact Dyfed Telecom in the hope of securing a comment, and we will report back once that arrives.