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."
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