Fri, 15 Nov 2024 | ADMINISTRATION
Yorkshire-based John Truswell Haulage, which was founded during the Second World War, has fallen into administration after being battered by economic uncertainty and higher costs.
The Dodworth, Barnsley-based company, known historically as John Truswell & Sons, was established in 1940 and operated 50 lorries from multiple locations across the UK including Lanarkshire.
Mark Thornton and Simon Girling of BDO - an accounting and business advisory firm - were appointed joint administrators earlier this week.
BDO, attributed the company’s collapse to a combination of dwindling demand and escalating costs. These challenges proved insurmountable, ultimately resulting in the loss of 86 jobs. The firm’s efforts to continue operations included an expansive sales process; however, no prospective buyers came forward, leaving the company with no viable future in the marketplace.
Thornton said: “Unfavourable market conditions have led to unsustainable commercial losses and, unfortunately, it has not been possible to secure a future for the company.”
He added that the administrators were focused on maximising returns for creditors as they navigate the legal obligations in the aftermath of the company’s failure.
An acquisition by OTIF Distribution in 2021 led to an increase in turnover to £12.2 million in the year ending July 2022. However, despite this growth, pre-tax profits declined by £43,000 to £388,000.
The company blamed escalating fuel prices as a result of the Ukraine conflict and increased interest rates.
In another attempt to secure its finances, Truswell Haulage executed a sale and leaseback agreement for its Barnsley warehouse this year, yielding £3.4 million. This move aimed to bolster the company’s capital and facilitate future investment strategies.
The haulage industry has been blasted by the uncertainty in the UK and global economy, supply chain disruptions and rising fuel and vehicle prices.
According to trade body The Road Haulage Association the average profit margin for businesses in the sector has fallen to as low as 2%. Nearly 500 hauliers went out of business in the UK 2023 with 2024 numbers also looking bleak.
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