EY administrators to plant hire group
18 Jan 2019
Sam Woodward, Alex Williams and Hunter Kelly of EY’s restructuring team have been appointed joint administrators of plant hire company, Hawk Plant (UK) Ltd and subsidiaries, which has collapsed, putting over 400 jobs at risk
18 Jan 2019
The group, based in Prees, Shropshire, also includes Hawk Plant Hire Ltd, Hawk Hire Ltd, Safety and Training Ltd, Hawk Plant Ltd, and Hawk Plant Sales Ltd.
It reported a turnover of £93.5m in the financial year to the end of December 2017, and has more than 40 years of experience in the plant hire industry, with its customer base primarily spanning the infrastructure, energy and homebuilding markets.
Sam Woodward, EY partner and joint administrator, said: ‘The group’s cash flow had been impacted by a number of historical problematic contracts and a delay in the commencement of anticipated projects.
‘Coupled with this, the group’s funding structure, with significant hire purchase and finance lease commitments put pressure on the cashflow at a time that asset utilisation was comparatively low.’
On appointment of the administrators, 83 of the group’s 420 employees were made redundant.
Subsidiary Enverity Ltd, a ground survey and sight inspection business based in Newark, which employs an additional 20 staff, remains solvent and unaffected by the administration.
Woodward said: ‘We will now begin the process of seeking to find a suitable buyer for Hawk, to ensure the best possible outcome for all of the group’s stakeholders. In the meantime, we will seek to minimise the impact on the customer base by keeping assets on hire and maintaining service levels.’
Report by Pat Sweet