Construction equipment firm falls into administration
Tue, 27 Jun 2023 | ADMINISTRATION
Adastra Access, a construction equipment supplier based in Glasgow, has fallen into administration as headwinds increase in the UK’s construction sector. The company, which has ceased trading, was a specialist supplier of suspended cradles, specialist access systems and mastclimbing work platforms and claimed to be one of the largest in the UK.
In the company’s accounts for 2021, its most recently available at Companies House, its fixed assets were valued at £12.9 million and current assets at close to £1.8 million, while net assets stood at nearly £3.2 million. The firm is reported to have had a fleet of around 400 mastclimbers with 5,000kg platform capacities, with such assets set to be brought to market after the business ceased trading.
During 2021, the firm reported turnover of £5.4 million and gross profit of £4 million, with a pre-tax profit of £770,078, compared to a pre-tax loss of more than £750,000 a year earlier. Despite the group’s improved performance, it owed around £11 million to creditors, including £5 million for “group undertakings”.
As a result of its struggles, the company appointed Blair Nimmo and Alistair McAlinden of Interpath Advisory as joint administrators on June 20 2023. The administrators claimed that the company had faced “trading losses and significant cashflow pressure” as a result of “significant operational, health and safety and financial challenges”
The company’s situation meant it was forced to close its West Midlands depot in 2022 while administrators said that a recent shareholder cash injection had failed to halt its financial deterioration, ultimately resulting in the business no longer being considered viable.
Commenting on the company’s collapse and the wider headwinds facing the UK construction sector, joint administrator Blair Nimmo said: "The collapse of Adastra Access is another indicator of the challenges and economic headwinds currently facing the Scottish and UK construction sector and in particular, subcontractors.”
"The directors fought hard to save this business, but it was ultimately impossible to mitigate the impacts of labour shortages, rising costs and delays to customer projects."
Read more about the issues facing the UK construction sector.
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