In a letter to creditors this week, joint administrator Sam Woodward said that there was no prospect of any funds becoming available to unsecured creditors.
Hewden had tried and failed to find a buyer for its powered access hire division in summer 2016 to reduce its debt burden.
Hewden’s lenders, exposed to the tune of £155.3m, first brought in accountants from EY in September 2016 to explore options when covenants were breached. Meanwhile, in October, Hewden’s management brought in Deloitte to try to sell the business – 14 potential buyers were approached, mainly private equity houses and distressed investors, but no deal reached.
As Hewden’s finances continued to deteriorate through the autumn, EY was appointed to accelerate the disposal process on 7th November 2016. It soon became apparent that none of the interested parties were in a position to table a proposal to keep the business going and so it was placed into administration on 22nd November 2016.
A-Plant paid £17.9m for Hewden’s access business, £2m for the the Interlift lifting and materials handling business, £9m for the on-site/industrial plant business and £500,000 for the brand name.
The sale of eight depots to Morris Leslie, JK Ashbrook, GAP and Nixon Hire has collectively raised £28.9m.
Assets with a net book value of £62.4m (including £24.9m of cranes) remain and are being sent to auction, with the expectation of realising at least £50m.
Hewden's finances
|
£000 |
FY2011 |
FY2012 |
FY2013 |
FY2014 |
FY2015 |
FY2016 Forecast |
|
Revenue |
119,497 |
101,856 |
95,391 |
90,812 |
83,788 |
84,100 |
|
Ebitda |
36,011 |
32,772 |
26,011 |
23,952 |
26,754 |
15,600 |
|
Interest & fees |
(3,213) |
(5,928) |
(7,893) |
(9,700) |
(12,500) |
(13,400) |
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