Transport and Haulage Sector

Every haulage and logistics business is different, however there are certain common issues that haulage and logistic businesses face, which are unique to the sector. Issues that we see regularly, do you recognise them?

• Margins, customers pressuring your rates “top down”, costs pressuring “bottom up”. The result is often loss making contracts which can hit cashflow.
• Under-pricing of contracts at the outset.
  Fuel cards costs and availability.
• Repair costs to older vehicles can mount up and older vehicles can be less efficient.
• HMRC debts; during covid HMRC permitted time to pay deals (TTPs) and now HMRC is rejecting them.
• Varying costs of fuel and inability to vary contract price, lack of hedging capability.
• Expensive to upgrade a fleet, credit rating can reduce new HP and lease options. Yet old fleets cost more money for repairs.
• Expensive training and compliance.
• Ensuring the Road Traffic Commissioners rules and requirements are met.
• Length of time to get paid by large customers.
• Lost contracts – and follow on inability to afford redundancy costs.

As expert turnaround practitioners, our specialists can help tackle these issues with you to get your transport business back on track. We can go through all the available options, like expert assessment of the issues your company faces, improving financial reporting, obtaining long term HMRC Time to Pay deals, building powerful and creative company voluntary arrangements to get costs own (like no cost redundancies and exiting property leases) and because we are also licensed insolvency practitioners we can run sales of businesses through pre-pack administrations. Or close them down through creditors voluntary liquidation if the company/business is no longer viable or if you have had enough.

The most important thing for you to do is to get together with KSA transport experts early, so we can take you through all the above options free of charge. We will then set out a written report telling you the best strategy. KSA will help YOU restructure YOUR business. Having first worked with haulage companies way back in 1996 we know a thing or two about turning them around and restructuring debts.

You may be concerned that entering a CVA means losing your vehicle operator’s licence but usually, since ownership is not changing hands, you won’t lose the licence and you don’t need to apply for a new one. If pre-pack administration is an option, it’s a little more difficult as ownership does switch over. The licence will become void so the new buyer ought to apply for a license 8-12 weeks before the sale. Administrators can contact the Traffic Commissioner and request permission to continue operating vehicles, but this can be very complex process so seek legal advice.

Call us on 0800 9700539 for free expert advice and a talk through your options. We can visit you onsite to discuss your specific situation. We will always set out plans to AVOID formal insolvency action if possible.

KSA has extensive turnaround experience with haulage and logistics firms such as car transporters, waste recovery and distribution, Heathrow logistics /national distribution companies (see “Circle Express CVA” online for example), outsourced supermarket transport companies, one man haulage firms, general large haulage and we even made important case law in one case – see Thomas v Ken Thomas case online

If you have cashflow worries, you should call Keith Steven for an initial chat on 0800 9700539, or call Gary Weber if you are based in the south east on 07739 325008

If you are based in Scotland, northern Ireland or the north west of England please call our turnaround manager Derek Robinson on 07540 432112