Park lodge manufacturer falls into administration amid plummeting demand
Wed, 10 May 2023 | ADMINISTRATION
A Peterborough-based manufacturer of park lodges has fallen into administration after suffering from a drop in demand. ReSolve Advisory Limited have been appointed as administrators to Lesko Park and Leisure Homes and are assessing the options available to the business.
The company, based at The Links in Orton Southgate, produced a range of park lodges, park homes and glamping pods. In its accounts for the year ending November 30 2021, the firm reported turnover of £3.28 million, an operating profit of £96,748 and a post-tax profit of £68,312.
Despite this, the business has suffered as a result of a “dramatic fall” in demand for park lodges and homes. Amid these difficult trading conditions, a company spokesperson said, the firm had explored “every possible option” to continue trading.
Following this process, it was ultimately decided that there was no alternative to placing the firm into administration, with administrators from ReSolve Advisory appointed to the business on the morning of May 5.
In the company’s accounts to November 30 2021, its fixed assets were valued at £91,243 and its total current assets stood at slightly over £2.3 million. At that time, the company owed over £2 million to creditors falling due within one year and £304,988 to creditors due after more than one year, leaving it with total net assets of £68,412.
Lesko's collapse comes during a period of mounting headwinds for businesses in the UK manufacturing sector. Despite this, M&A activity in the industry has been rising, driven by factors ranging from distress to private equity investment. Read about what else is behind surging manufacturing M&A and whether the trend is likely to continue.
Download our free guide: How to find and buy distressed businesses and assets
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