A SCOTTISH company which The National revealed had not fully paid its staff for months is being wound up.
Datalytics Technology, which is based at the Inovo Building in George Street, Glasgow, was involved in developing statistical analysis software for the NHS and other sectors.
It was one of seven private limited companies run by James Sheffield, who said in February, that he was waiting for further investment from Scottish Enterprise, which had given the firm a grant £100,000 in 2015.
He said then: “Basically we are in the process with an investor – Scottish Enterprise – to get more funds into the company.
“It’s not an ideal position for any company to be in, no.”
However, the economic development agency said it had received no application from Sheffield for further grants.
Yesterday, Sheffield changed his story, saying: “I said there was a discussion that was ongoing with Scottish Enterprise.
“We had funding from Scottish Enterprise and we were in discussion with them.”
He said Datalytics Technology had gone into receivership and that the staff – who have all left – were being “dealt with by the administrator”.
More than two dozen staff were employed at Datalytics and, since we spoke to them in February, others have come forward to back up their claims that salaries had been delayed or only partially paid for six months.
At least one employee has had no pay for five months.
“We were promised salaries of over £60,000 plus bonuses and benefits, including share options and so on, but none of them materialised,” said one former member of staff.
“One of my colleagues was at the point of losing their home and was having to move into a hostel until they managed to find new work.
“Throughout all this time Sheffield kept promising that things would be sorted out ‘next month’, which never arrived. He even brought in one of his investors to tell us that they would put enough money into the company to cover salaries if certain conditions were met.
“These were met but still the salaries were delayed.”
One of Datalytics’ investors was Andrew Lapping – through his Hamilton Capital Partners – whose restructuring and investment proposals for Carlisle United Football Club was rejected three years ago.
Sheffield said Lapping had been involved with the company: “Let me be very specific – Andrew Lapping headed a consortium that had invested in the company.”
But he said there was no continuing relationship, as Datalytics “is being dissolved, wound up”.
Lapping could not be contacted for comment yesterday.
Asked if former staff would be paid what they are owed, Sheffield replied: “The insolvency practitioner, the administrator, will put that process through.”
He directed us to the administrator, Glasgow-based mlm Solutions, where we were told that the firm had not yet been appointed to act for Datalytics.
Sheffield added: “Basically we’re a small software company that has obviously sought to get funding to be able to get through the stages of start-up to take a product to market.
“We’re not unusual – I’m surprised at the interest in this particular company. We’re not unusual. The process we’ve been through is not unusual, we’re not alone and I’m surprised there’s a focus on us as a company.
“We are a start-up company and we have had challenges with our funding and that is to do with the nature of being a start up and investors not coming through with the investment.
“I’m not passing the blame and I’m not blaming investors for anything. I’m simply stating what the process is we’ve been through.”
“I will agree with you it’s not a great position to be in, not an enjoyable process to have been put through. For the staff it is a terrible situation to have faced.”
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