Hawk Plant Hire enters administration
15. January 2019 | Comments (2)
Shropshire, UK-based telehandler rental company Hawk Plant Hire has called in the administrators due to cash flow issues, partly related to last year’s failure of major contracting group Carillion.
The company reported having a fleet if 385 telehandlers, making it the 11th largest in the UK, according to the latest Cranes & Access Top 30 telehandler rental companies Click here to access the latest Top 30 rental companies report in our library
The notice to appoint administrators Sam Woodward, Alex Williams and Hunter Kelly of EY restructuring, was filed yesterday, and they have taken over the financial running of the business while they seek a buyer or work out a recovery plan.
Hawk Plant Hire - which makes up around 80 percent of the group - reported revenues of £75.4 million for the year to the end of 2017, with a pre-tax loss of £734,000. It had total assets of £141.9 million against liabilities of £136.6 million. But current liabilities make up £98.8 million of this against current assets of £46.9 million! And this for the period before Carillion went into administration.
In spite of this no warning was given by the company or its auditors KPMG of the seriousness of the situation when the parent company Hawk Plant (UK) Ltd - which also includes Hawk Hire and a small sales operation - filed the group accounts less than three months ago. It posted revenues of £93.5 million with a pre-tax profit of £515,000. Its working capital situation however was similar to its largest operating business, being negative to the tune of £46.2 million.
The group employed around 420 staff, but 83 have been let go on appointment of the administrators. The business is owned by members of the senior management team along with Business Growth Fund.
Joint administrator Sam Woodward said: “The group’s cash flow has 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 cash flow at a time that asset utilisation was comparatively low.”
The company reported having a fleet if 385 telehandlers, making it the 11th largest in the UK, according to the latest Cranes & Access Top 30 telehandler rental companies Click here to access the latest Top 30 rental companies report in our library
The notice to appoint administrators Sam Woodward, Alex Williams and Hunter Kelly of EY restructuring, was filed yesterday, and they have taken over the financial running of the business while they seek a buyer or work out a recovery plan.
Hawk Plant Hire - which makes up around 80 percent of the group - reported revenues of £75.4 million for the year to the end of 2017, with a pre-tax loss of £734,000. It had total assets of £141.9 million against liabilities of £136.6 million. But current liabilities make up £98.8 million of this against current assets of £46.9 million! And this for the period before Carillion went into administration.
In spite of this no warning was given by the company or its auditors KPMG of the seriousness of the situation when the parent company Hawk Plant (UK) Ltd - which also includes Hawk Hire and a small sales operation - filed the group accounts less than three months ago. It posted revenues of £93.5 million with a pre-tax profit of £515,000. Its working capital situation however was similar to its largest operating business, being negative to the tune of £46.2 million.
The group employed around 420 staff, but 83 have been let go on appointment of the administrators. The business is owned by members of the senior management team along with Business Growth Fund.
Hawk runs a fleet of 385 telehandlers
Joint administrator Sam Woodward said: “The group’s cash flow has 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 cash flow at a time that asset utilisation was comparatively low.”
MS
15. January 2019 21:56
This is what I'm saying all the time.
We have massive bubble in rental industry.
Even with economy o highest gear - some companies can't make money, and other are making pennies.
Fleets expanded in thousands on cheap finance options - just wait BOE increasing interest rates.
Hewden, Hawk - went bust in good times. Don't even want to imagine what will happen, when recession will hit the market.
And it will.
Soon.