Winterhill seeks £6m with AIM listing

A CORPORATE insolvency specialist is looking to float its shares to raise £6m with which it can capitalise on increased business as the recession ends.

Winterhill Group Plc has become the first in the north west to attempt to float its shares on the Alternative Investment Market (AIM) this year.

The Blackburn with Darwen-based company, which was founded in 2008 by Andrew and Neil Duckworth, specialises in the sale and valuation of distressed assets, recovery and turnaround.

Upon admission to AIM, Winterhill Group will comprise Winterhill Asset Ltd and Legal and Receivables Ltd (Largo) which is based in Ossett, near Wakefield.

The company intends to use the £6m it will raise to acquire Largo, provide working capital to assist organic growth, pursue a buy and build strategy going forward and further incentivise key employees.

The move is seen to be indicative of the growing signs of confidence within the sector which traditionally sees an increasing number of insolvencies as an economy emerges from recession.

Neil Duckworth becomes chief executive officer of the new Winterhill Group Plc and Andrew is executive director of the business. 

Neil Duckworth said: “While we have had success in the insolvency market during the current recessionary climate, the initial public stock offering (IPO) provides a real opportunity to expand the Winterhill Asset business into non-insolvency based services.

“This will include the provision of asset appraisal and recovery services direct to banks and asset based lenders.

“The acquisition of Largo marks a significant step in the group’s aim to provide a single source of asset valuation, recovery, restructuring and realisation services.

“We look forward to working with the Largo team as we aim to continue its impressive growth record.”

Largo, which was established in 2002 by Paul Snook, is a specialist corporate debt recovery business providing debt collection and debt management solutions to financial institutions, asset based lenders, insolvency practitioners and corporate clients throughout the UK.

Andrew and Neil have 20 years’ experience in turnaround and insolvency work having taken over the international, well-established SHM Smith Hodgkinson in 1988. 

They grew SHM into one of the leading global brands in the sector with offices throughout Europe and Asia prior to selling it to Gordon Brothers International in 2004.

Last February, the duo was part of the team that launched the £20m Eternitas fund to rescue distressed businesses.