Mon, 19 Jun 2023 | ADMINISTRATION
A £5 million turnover groundworks company based out of Otley, West Yorkshire has been sold out of administration in a pre-pack deal, saving the jobs of its 15 employees.
Steven Wiseglass, a director at Manchester-based Inquesta Corporate Recovery & Insolvency, and Joanne Hammond, a partner in the Sheffield office of Begbies Traynor, were appointed as joint administrators of YPP Groundworks & Civils Ltd earlier this month.
The business was acquired by a small local company, Yorkshire Pro Paving Limited, which according to its most recent financial accounts to 31st March 2023, is sitting on just £69,000 of retained earnings and called up share capital.
YPP Groundworks & Civils, which was incorporated in 2014, won a series of awards and built a solid reputation undertaking groundworks for domestic and commercial customers in the public and private sectors.
The company grew in size, and in the year to March 2022 generated turnover of £5.7m. However, it experienced pressure on its cashflow due to a large contract being impacted by the pandemic alongside rising material prices, and swung to a loss.
Mr Wiseglass said there was no prospect of securing new funding for the business. He added: “Following our appointment, a number of expressions of interest were made to acquire the business, but only one acceptable offer was received.
"The company has a proven track record across the Yorkshire region and a skilled workforce. The sale represents a better outcome than the alternative of placing the business in liquidation, as it safeguards the jobs of its employees and its existing contracts."
Established scaffolding company with secure contracts in place with major house builders and a large client base, poised for growth.
Opportunity to acquire a well-established groundworks and construction company with a strong client base and ongoing projects.
Exciting opportunity in the concrete reinforcement industry with huge growth potential.
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.