T.G. Howell & Sons Limited (01762349): administration
- Status
- In administration
- Administration began
- 2024-02-05
- Administrators
- Katrina Jane Orum, Huw Powell
- Administrators' firm
- Begbies Traynor
- Incorporated
- 1983-10-18
- Location
- Cardiff
- Industry
- 16100 Sawmilling and planing of wood
Why it went into administration
- Sustained trading losses
- COVID-19
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Property / lease costs
- Credit insurance / supplier credit withdrawn
- Competition / price pressure
From the administrators' statement
The Company was first established by Terry Howell in 1956 and grew from manufacturing wooden ladders into the Company, which was incorporated in October 1983 and operates two Timber & Builders Merchant retail sites, plus a wholesale timber business. The retail sites are based at two leasehold properties at Unit 15, Maesglas Retail Park, Port Road, Newport, Gwent, NP20 2NS and Albion Sawmills, Albion Road, Pontypool, Torfaen, NP4 6AR (“the Retail Sites”), with both properties owned by the parent company, Rogerstone Woodworkers Limited, which is also the largest creditor of the Company. The wholesale business was operated from a property leased from the Association of British Ports (“ABP”) which runs until 2037 at Unit B15, Westway Road, Alexandra Docks, Newport, Gwent, NP20 2WD (‘the Docks Site”). The primary business of the wholesaler was purchasing and treating timber. In addition, sales are made via the Company's website at https:/Avww.terryhowell.co.uk/.
The Company has been very successful over the years and whilst there has always been some level of volatility in the price of timber, trading has been more unpredictable since the pandemic, with losses in the year to October 2020 followed by profits to October 2021 and then further losses to October 2022. Despite efforts to cut costs including changes in senior management and a new stock purchasing strategy, further losses have been incurred since, mostly attributable to the wholesale business and requiring the parent company to increase its support to in excess of £1m. The Company employed 53 people across the retail and wholesale businesses.
The Company began to experience financial difficulties and volatile trading as a consequence of the pandemic.
Administrators' statement of proposals (2024-02-17) · Companies House register