Thu, 15 Feb 2024 | ADMINISTRATION
A Bradford-based delivery company is set to fall into insolvency after filing a notice of intention (NOI) to appoint administrators. A to B Direct Limited is a haulage, courier service and parcel delivery firm that claims to be the largest independent courier in Bradford.
The company, which is based at the Headway Business Centre in Dudley Hill, has been trading for close to 20 years, operating a fleet of vehicles, including Bipa vans and curtain sided wagons, and providing same-day delivery, parcel delivery and pallet networked services.
In addition to its delivery services, which the company operates throughout the UK, as well as Ireland and Europe, A to B Direct also offers short and long-term storage options for palletised goods at its secure premises.
According to its most recent accounts, for the year to April 30 2022, the company employed an average of 20 staff during 2022. In those accounts, the company’s fixed assets were valued at £75,462, down from slightly over £108,000 a year earlier, while current assets were valued at more than £309,000. At the time, the company owed creditors in excess of £175,000, with its net assets totalling £160,802.
The company’s NOI comes during a period of mounting insolvencies in the UK’s haulage industry, with 463 haulage companies having fallen into administration during 2022-2023, compared to 350 during 2021-22 and just 225 during 2020-21 when companies were protected from administration by restrictions on insolvency proceedings.
According to a report from Price Bailey, haulage insolvencies are forecast to remain high, with companies struggling with factors including rising fuel and wage costs, soaring interest rates and unserviceable levels of debt.
This spike in insolvencies has occurred amid high acquisitive sentiment in the wider logistics sector, with many potential buyers likely to be looking to distressed acquisitions as they seek to add services, grow geographically and build scale.
Find out more about the recent M&A and insolvency trends in the UK logistics sector
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