Thu, 27 Jul 2023 | ADMINISTRATION
London-based Haydon Mechanical & Electrical has filed a notice of intention to appoint administrators. The company entered a Company Voluntary Arrangement (CVA) with its creditors last year as a result of cashflow problems in the wake of the COVID-19 pandemic.
The CVA, which the company entered in August 2022, was designed to distribute £7.2 million to the firm’s creditors at a rate of £200,000 per month, with repayment starting from November 2022 and seeing suppliers receive at least 80p to the £1 in return for their debts.
At the time, the firm had a loan agreement in place with former parent company Mears, which had sold Haydon to its management team in 2013 for £1 million. Mears had agreed to postpone all loan repayments for a period of at least 18 months as the company worked through the CVA.
In Haydon’s most recent accounts at Companies House, covering the period from July 1 2020 to December 31 2021, it reported turnover of close £66.2 million, compared to £58.8 million for the year ending June 30 2020, but fell to a £6.2 million pre-tax loss from a £1 million profit in its previous accounts.
In those accounts, the company noted that, due to the nature of its business, “there can be considerable unpredictable variation in the timing of cash inflows” a situation that had been “compounded by the COVID-19 pandemic, and the ensuing lockdowns and government restrictions which resulted in a slowdown in the industry, delays on contracts, cost increases and the erosion of contract margins”.
The company said that these issues had led to it entering the CVA, but added that projected cash flow information up to November 2025 indicated that the company would return to profitability during 2022 “and will continue to be profitable for the duration of the period considered.”
Despite this optimism, the firm is now poised to fall into administration. In its accounts to the end of 2021, its fixed assets were valued at £93,848 and current assets at close to £16.5 million, while its net liabilities amounted to £1.4 million.
Read about the latest developments as UK company insolvencies continue to increase.
An exciting opportunity to purchase a North East specialist contractor providing diamond drilling & sawing and fire protection services. The leading North East specialist drilling & sawing contractor, with an excellent reputation and an expert servic...
The business has been solving access problems for its industrial, commercial and domestic clients since 1977. The company hires and erects aluminium scaffold towers, bridging units, cantilever and facade scaffolding plus staircases. All scaffold towe...
Long-established Essex industrial roofing and cladding providers, the business is located in a prominent trading position.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.