Social research specialist RBA in administration

UK social research specialist RBA Research has gone into administration and will cease trading at the end of this month, with managing director Iain Sutherland blaming a “more commodity-driven” sector for the agency's woes.

Paul Vittles, who was CEO of the agency until January 2005, when he left for a career in Australia, told Research: “I'm very sad to hear the news about RBA. It had a great run and, in its lifetime, it was a terrific innovator and upholder of quality in the research marketplace.

“I knew that the competition was fierce and that there was commoditisation of the core local government business but I was expecting RBA to thrive and still be around if and when I returned from Australia.”

Sutherland said RBA – which works with local and central government, health and education providers, and other public sector clients – stood for “innovation and creativity”.

“The marketplace was providing less opportunities to deliver that,” he said. “It was all price-driven, and its becoming more so.

“It became very competitive in terms of getting the volume through and we had to compromise on margins.”

Sutherland said competition started to bite earlier this year: “We got into a position where we needed support from our bank, and we needed Inland Revenue and Customs to meet us half way.”

However, neither was forthcoming with support, said Sutherland. Soon after, the directors of the owner-managed agency began speaking with insolvency specialists, and Begbies Traynor was appointed administrator at 2.40pm last Wednesday.

Twenty redundancies were made, reducing the company's headcount to just 10. The remaining employees will work to complete outstanding projects before the end of the month.

Sutherland said there was slim hope of a last minute rescue package for the Leeds-based agency. Although there had been some interest, he said there was now “very little to salvage”.

RBA was established in 1981 as Robertson Bell Associates, becoming part of The Whitaker Group of marketing services companies in the late-80s. It became independent again in 2000 following a management buyout.

• After an 18-month stint as director of public enterprise research at ACNielsen Australia, Paul Vittles is now director of social planning and research at Urbis Keys Young, based in Sydney.

Author: Brian Tarran