Tue, 28 Nov 2023 | ADMINISTRATION
Administrators are seeking to sell the assets of a Midlands scaffolding company after it fell into administration and ceased trading. Swift Scaffold (Midlands) Limited collapsed on November 17 2023, with FRP Advisory’s Nathan Jones and John Lowe appointed as joint administrators.
The company, which is based in Burton-on-Trent, had faced margin pressures on its contracted work prior to entering administration. The firm provided scaffolding services for construction sites throughout the Midlands.
Despite efforts by the company’s directors to secure a solvent sale of the business, no viable offers were received and the company ceased trading following the appointment of the joint administrators.
The joint administrators are now engaged in a sale process for the business’ assets and are also working with the company’s four full-time staff members while fulfilling their statutory duties. Alongside its full-time workforce, Swift Scaffold also worked with a team of around 30 sub-contractors supplied via an agency.
In its accounts for the year ending June 30 2022, Swift Scaffold’s fixed assets were valued at slightly over £1 million, compared to £962,295 in its previous set of financials, while current assets stood at just over £5 million, down from £5.2 million. At the time, its total equity amounted to £4.5 million, compared to £4.1 million in its previous accounts.
As insolvencies increase amid widespread economic headwinds across the UK, construction has been the industry worst affected, with companies in the sector facing supply chain issues, soaring raw material costs, high inflation and interest rates and unmanageable debt piles from the COVID-19 pandemic.
The issue has become particularly pronounced as more companies fall into insolvency, which has subsequently impacted other companies within those supply chains, many of which may have already been in a precarious position. Construction companies accounted for 18 per cent of total UK insolvencies in the year to the end of Q3 2023 and Begbies Traynor has warned that around 6,000 construction firms are currently in critical financial distress.
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