Hawk Plant (UK) Limited and its subsidiaries, have fallen into administration.
The plant hire group is one of the largest independent in the UK. They made a pre-tax profit of £515,000 in 2017 and with over 40 years’ experience in the industry, they captured a wide customer base, primarily focusing on those within the homebuilding, energy and infrastructure industries.
However, following some problematic contracts and delays of projects, as well as a pressurised, unstable funding structure, the groups cashflow struggled. Hire purchase and financial leases were unsustainable, when asset use was low.
Carillion have been name dropped to of played a part, due to the high level of credit insurance they held – meaning a minimal write off of balance was outstanding at the time of liquidation. Additionally, there was the rescheduling of contracts which needed to be arranged.
The appointed administrators commented ‘’We will now begin the process of seeking to find a suitable buyer for Hawk, to ensure the best possible outcome all for of the group’s stakeholders. In the meantime, we will seek to minimise the impact on the customer by keeping assets on hire and maintaining service levels’’.
The 83 of the 420 staff were made redundant. They have been offered advice, support and the ability to claim both redundancy and notice pay.
Category: What is administration