Jobs saved in pre-pack sale of groundworks business

A West Yorkshire groundworks company has been sold out of administration in a pre-pack deal which saves 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, which is based in Otley, has been acquired by Yorkshire Pro Paving Limited.

YPP Groundworks & Civils, which was incorporated in 2014, undertook 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.

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.”