Endless confident despite Speed Frame collapse
THE founder of turnaround and investment fund Endless has said it has a £150m war chest to invest despite the collapse of two of its businesses.
Garry Wilson, who founded Endless three years ago, said the fund is profitable and is looking at a host of investment opportunities after the first business it backed, Barnsley-based PVC-u window firm Speed Frame, went into administration earlier this week with the loss of 300 jobs.
It came just two weeks after another Endless-backed business STP Group, which is based in New Mills and makes timber doors and stairs, called in administrators.
Mr Wilson, a former Ernst & Young insolvency partner, said today that both firms had been hit by the collapse in the new-build housing market and Speed Frame, which made a profit of £1m last year, had seen a 70% drop in sales in recent months.
“The management, employees and Endless all tried their best but with the decline in the market we couldn’t see a viable position,” he said.
Mr Wilson, who launched Leeds-based Endless with former Ernst & Young colleague Darren Forshaw, said that the other 14 companies that the fund has backed are performing well, particularly Sheffield engineering firm DavyMarkham and book retailer The Works.
“They are benefiting from the current climate. We are very pleased with how our companies are performing. Our deal flow has rocketed in the past two weeks. There are further acquisitions in the pipeline but we have got to be very careful where we spend our capital.
“Our second fund has over £150m left to invest and we see the next two yearts as a very acquisitive time for us. We made a profit of £16m in the year to April 30.
Toby Underwood of BDO Stoy Hayward was appointed as administrator to Speed Frame yesterday afternoon and the 300-strong workforce, who have been on a three-day week for the last few months, were laid off.
Administrators from the Manchester office of Ernst & Young were appointed last month at STP, which employs 170 people at sites in New Mills, Leeds, Bristol and Wakefield, and are continuing to trade the business while they look for a buyer.
Meanwhile, around 280 people are facing redundancy at Cosalt Holiday Homes following a drop in orders at the Hull-based caravan and lodge business.
Another 80 jobs have gone at Atlas Holiday Homes.
