Malpas Tractors falls into administration
Thu, 19 Dec 2024 | ADMINISTRATION
Welsh-based agricultural machinery dealership and parts distributor Malpas Tractors has crashed into administration.
The Wrexham-based business operates from several depots throughout north Wales and north-west England, stocking major brands including New Holland.
Patrick Lannagan and Richard Hough of Forvis Mazars were appointed as joint administrators of Malpas Tractors on 16 December.
Hough said: “The company has experienced cash flow difficulties resulting from difficult trading conditions in the sector. These cash flow difficulties have led the directors to take the difficult decision to place the company into administration.”
He added that he and Lannagan are continuing to keep the financial position of the company under review but have had to make 43 redundancies. “The business is now operating with a reduced workforce whilst we explore any interest any potential buyers may have in the business,” Hough said. “All known creditors are due to be contacted by the administrators in the coming days.”
The administrators have also encouraged anyone interested in acquiring the business or assets to get in touch.
According to its most recent results to the year to 31 December 2022 the company recorded a turnover of £42.4 million. This was down slightly from £42.9 million the previous year.
Its profit before taxation came in at nearly £957,000, down from £1.1 million the year before. Net current assets rose to £4.9 million, from £3 million previously.
The directors said they were pleased with the performance and that they continued to invest in the business.
However, in August this year, the company announced the death of its managing director, Paul Reeves.
It has also likely been affected by a general decline in tractor sales in the UK. According to the Agricultural Engineers Association, tractor registrations for the first nine months of 2024 were down by 15 per cent on the same period last year. It blamed adverse weather conditions hitting agricultural output and more challenging financial conditions for farmers.
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