Yorkshire steel fabrication business seeks rescue deal
Mon, 25 Mar 2024 | ADMINISTRATION
S.H. Structures Ltd, a steel fabrication specialist based in North Yorkshire, has filed a notice of intention (NOI) to appoint administrators. According to reports, the company has been hit hard by a post-COVID-19 downturn and has also been affected by a £500,000 government-backed business interruption loan taken out during the pandemic and repayable over five years.
The company, which was founded in 1992 and is based at a 3,000 sq m Sherburn-in-Elmet factory, has a strong reputation for producing complex steel structures and specialist bridges and a highly skilled 70-strong workforce. Its notable projects include PoliNations in Birmingham, Murdoch's Connection Footbridge in Hull and Barton Square in Manchester.
Despite its reputation, the company has incurred losses on several contracts, as well as a gap in production scheduling as a result of project delays. According to an insider quoted in industry publication Construction Enquirer, the business has been put under “extreme pressure” due to plummeting demand for “highly complex architectural structures”.
The business has reportedly been seeking a buyer for some time, but has been unable to secure a sale. As a result, it has filed an NOI to appoint Andrew Mackenzie and Louise Longley of Begbies Traynor as joint administrators, a move that will protect the firm from creditor action while its options are explored and the search for a buyer continues.
In the company’s most recent accounts at Companies House, for the year to February 28 2022, its fixed assets were valued at slightly over £228,016 and current assets at around £3.4 million. At the time, the firm’s net assets amounted to £347,799.
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