Mon, 04 Sep 2023 | ADMINISTRATION
A logistics firm based in Leicester is reportedly poised to enter administration. G Force Group Limited, which trades as Gee Force Logistics, has reportedly posted an application to be placed into administration via the law firm Schofield Sweeney.
While no information has yet been disclosed on the group’s struggles, it is set to enter administration during an extended challenging period for businesses in the UK’s logistics sector, as companies continue to be impacted by headwinds including inflation, supply chain issues and an ongoing skills shortage.
Gee Force Logistics was founded in 1986 and is based on the Whittle Estate in the Whetstone area of Leicester. The company provides a range of logistics services including storage, packing, metal detection, distribution, point of sale assembly, label production and quality control.
G Force Group Ltd’s most recent accounts at Companies House cover the year to June 30 2022. During that period, the firm’s fixed assets were valued at £96,515 and total current assets stood at £213,700, down from £234,653 a year earlier.
Less liabilities, the company’s total net assets amounted to £138,761, up from £134,876 in its accounts for 2021. During the year, the company had an average employee headcount of 16, compared to 14 the year prior.
Despite the struggles that many businesses in the UK logistics market have faced over recent years as the sector was hit by Brexit and COVID-19, M&A sentiment has remained high. A 2022 report from BDO and Barclays found that confidence within the sector had declined over the previous year, but owners seemed set to respond through M&A activity, with deals seen as an effective way to grow scale, expand services and increase geographic footprint.
At the time of the report, 45 per cent of respondents said they were planning to make acquisitions over the coming year and dealmaking has remained strong since then. According to a recent update from BDO, there were 32 deals in the sector during the first half of 2023, up from 29 in the second half of 2022.
BDO M&A Partner Jason Whitworth said: “Following a slow start to the year, deal volumes rebounded in Q2, indicating a continued appetite for consolidation and investment in technology.”
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