Plant hirer cites Carillion fallout as it slides into administration.
More than 80 staff have been made redundant at a Shropshire-based Hawk Plant, which has been involved in landmark projects such as the 2012 Olympic Park and the Hinkley Point C nuclear power station, after it entered administration.
Hawk Plant (UK) had a turnover of a turnover of £93.5 million in the financial year to the end of December 2017. It employed some 420 people and has been operating for more than 40 years.
Construction Enquirer is reporting that the company ran into debt problems after being hit for around £800,000 from the collapse of Carillion and a problem contract in Sierra Leone.
Sam Woodward, Alex Williams and Hunter Kelly of EY’s restructuring team have been appointed joint administrators of the business and its subsidiaries Hawk Plant Hire, Hawk Hire, Safety and Training, Hawk Plant, and Hawk Plant Sales.
“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. We will now begin the process of seeking to find a suitable buyer for Hawk, to ensure the best possible outcome for all of the group’s stakeholders. In the meantime, we will seek to minimise the impact on the customer base by keeping assets on hire and maintaining service levels,” Woodward says. “It is with regret that 83 people have been made redundant. Our specialist team will work with those affected to help them claim outstanding wages and other payments due from the Redundancy Payments Office.”
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