Mon, 16 Oct 2023 | ADMINISTRATION
Hamon UK Limited, a wet cooling specialist based in Hull and founded in 1975, has fallen into administration and ceased trading. While the company’s collapse means there is no ongoing business to market, administrators are now seeking to secure a sale of the company’s assets.
In its accounts for the year ending December 31 2022, Hamon UK reported turnover of close to £4.4 million, down from £4.8 million a year earlier, while its losses narrowed from £1.9 million in 2021 to £1.3 million. At the time, the company’s current assets were valued at £1.1 million, but net liabilities amounted to £3.79 million.
In those accounts, the company’s directors said that, despite having expected to “return to normality” in 2022 following the impact of COVID-19 during 2020 and 2021, the company’s performance continued to be “depressed by the ongoing effects of post-COVID-19 restrictions.”
The directors said that several customers continued to operate within COVID-19 restrictions and guidelines, which, combined with the bankruptcy of its parent company and most of its subsidiaries (collectively known as Hamon Group) in April 2022, meant that the expected recovery did not materialise.
Despite reporting “significant improvements” in both orders and profitability on existing contracts in the early months of 2023, the company encountered further cashflow problems when a contract failed to materialise and it was unable to access financial support.
As a result, Andrew Mackenzie and Laura Baxter of Begbies Traynor were appointed as joint administrators to the company on September 29 2023. All 40 of the company’s staff have been made redundant, with its assets now set to be sold off.
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