Harveyson Haulage Limited (05762610): administration
- Status
- Administration ended
- Administration began
- 2018-07-18
- Administrators' firm
- Quantuma
- Incorporated
- 2006-03-30
- Location
- Southampton
- Industry
- 49410 Freight transport by road
Why it went into administration
- HMRC / tax arrears
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Competition / price pressure
- Creditor pressure / legal action
From the administrators' statement
3.1. Very early on, the Company entered into a contract with Anglian Water. Originally, the contract was extremely profitable, however after 10 years, Anglian Water made the decision to take in more work internally which caused the directors to look to diversify the business into industrial and chemical waste.
3.2 As a result of this diversification, the Company won a two year contract with London Transport in 2014. However, after 12 months, London Underground changed the way in which the contract was managed and the contract was put on hold. The directors expected the contract to recommence and on that basis the tankers and drivers were retained. The contract was not restarted which resulted in the business suffering large losses during that period. This was further impacted by a price increase of c30% in diesel which could not be passed on resulting in significant cashflow problems.
3.3. In recent years, a number of competitor waste companies started operating in the local vicinity and to generate business, offered extremely low prices. As a consequence, the Company lost work and was to lower its prices. Although a number of these competitors have fallen away, the Company was unable to increase its prices which has had a negative effect on the profitably on a number of existing contracts.
Administrators' statement of proposals (2018-09-19) · Companies House register