Matthew Kibble Transport (MKT) says it is among numerous transport firms left out of pocket following the collapse of software provider Database Business Systems (DBS). As reported on Roadtransport.com, the recent cut in VAT has exacerbated the problems caused by DBS's failure as the firm's fleet management software is stuck at the old 17.5% rate, making it practically useless for invoicing.
For MKT, however, problems with the software existed long before DBS entered administration on 5 November.
Vicky Kibble, responsible for the firm's IT, tells Motor Transport: "We signed up with DBS for a bespoke software package in October 2007. The sales pitch was professional and they told us their developers could tailor the program to do anything we wanted. However, after investing a few thousand pounds, the program was far from what we asked for. Many updates and more money later, the system was still not up to the original spec.
"In October 2008, we complained again and a representative from DBS came to see us. He saw straight away how underdeveloped the system was and admitted that DBS was biting off more than it could chew. A few weeks later DBS had gone under."
As the program was internet-based and hosted by the DBS server, MKT faced the loss of all its customer data when the administrators turned off the servers. However, when Kibble contacted administrator Tenon Group to retrieve the data, she was told she'd have to pay £2,000 for it, despite already spending £10,000 on the software.
In the end MKT paid £500 for the data and, despite hiring a developer to try and fix the problems that DBS should have previously repaired, has now reverted to its old Roadrunner software system which is over four years old.
Fullforce Services in Coventry has suffered an almost identical fate, spending £16,000 with DBS for a program that never worked correctly. Meanwhile, Tenon Group tells MT a creditors' meeting is scheduled for February, but "there is no prospect of any funds being available to unsecured creditors".