Struggling scaffolding firm bought out of administration

Some 20 jobs have been saved at a Salford scaffolding company after it was acquired out of administration by Peter Connolly Scaffolding Ltd (North West).

The directors of PCSL approached business rescue and recovery specialist Begbies Traynor in November this year, after increased costs put pressure on the company’s cashflow leading it to become loss making.

As a result, the company, which is based in Irlam, fell in to debt arrears and could not meet its tax obligations.

Begbies Traynor was formally appointed as administrators on December 22. The sale to PCSL completed on the same day.

The transfer of the company will safeguard the jobs of all 20 employees and allow the firm to complete all current projects and obligations.

Gary Lee, partner at Begbies Traynor in the North West, said: “Peter Connolly Scaffolding has been operating for nearly 10 years, so it’s positive that we’ve been able to secure a deal that will allow the business to continue trading.

“Rising costs had put pressure on the company’s profit margins and cashflow in recent months, meaning that it could not meet its payments to HMRC.

“This left the directors with no other option than to approach us for support, and we determined that the pre-pack deal would be in the best interest of creditors.

“We’re finding that rising costs are impacting many companies across the construction sector, as in many cases firms cannot pass on the increase to customers leading to profit margins becoming significantly reduced.”