Newark firm ‘solvent’ after administrators called in at parent company
A ground survey and sight inspection business based in Newark, which employs more than 20 staff, is continuing to trade as normal after its parent company slipped into administration.
Enverity remains solvent despite parent company Hawk Plant (UK) and five of its subsidiaries calling in administrators Sam Woodward, Alex Williams and Hunter Kelly from EY’s restructuring team.
The news comes after 80 jobs have been lost and another 340 are under threat after Hawk Plant (UK), one of the UK’s largest independent plant hire companies, entered administration.
Enverity specialises in the provision of geotechnical and construction materials testing for civil engineering purposes.
Accounts signed off just 10 weeks ago, for 2017, showed a small profit for the £94m-turnover group and included no going concern warning.
It described a “satisfactory performance” and while it did note the collapse of Carillion in January 2018 had caused “some timing disruption” to contracts, the company’s directors said they did not expect to lose out significantly because of the credit insurance it had in place.
However its administrators say the group, based in Whitchurch, Shropshire, had been struggling with the burden of weak demand and large costs.
Joint administrator Sam Woodward said: “The group’s cashflow had been impacted by a number of historical problematic contracts and a delay in the commencement of anticipated projects.
“Coupled with this, the group’s funding structure, with significant hire purchase and finance lease commitments put pressure on the cashflow at a time that asset utilisation was comparatively low.”
On appointment, administrators made 83 of the group’s 420 employees redundant.
The business had enjoyed a period of strong growth and was backed by £8m from the Business Growth Fund three years ago.
BGF created a charge against the company on Christmas Eve, just weeks after an intercreditor agreement had been lodged by Aurelius Finance, creating a debenture against some of the group’s assets. Aurelius, an alternative funder, had control of blocked bank accounts and oversight of four of the group’s major contracts.
These included its work on Hinkley Point C nuclear power station, the Lincoln Eastern Bypass, the Integra 61 development in Durham, and a contract with St Modwen.
