Traffic management contractor falls into administration

A South Lanarkshire-based traffic management contractor has fallen into administration following a petition to Hamilton Sheriff Court by its directors. The collapse of Uddingston company Apex Traffic Management Limited has resulted in the loss of 119 jobs across the firm's sites.

Apex Traffic Management, which reportedly generated turnover of £9.7 million, provided road barriers and signage, with customers including Highways England, Amey Construction, Transport Scotland and Lanes Group.

Over recent years, the firm had expanded to provide traffic management services to a range of venues including the 2024 Open at Royal Troon and Hamilton and Ayr Racecourses. In addition, the company also operated over 150 sets of roadwork traffic lights.

However, the business fell into administration on August 21, with Kenneth Craig and Kevin Mapstone of Begbies Traynor appointed as joint administrators. Begbies Traynor partner Thomas McKay will work with the joint administrators to oversee the liquidation of the business and its assets and the consultation process with staff.

According to Mr McKay, Apex’s directors “had little choice but to place the business into administration after receiving a petition by HMRC for liquidation, and after consultation with the firm’s secured creditor Lloyds Commercial Finance.”

McKay stated that the business’ cash flow had been hit by tightening margins and slower debt recovery, along with the increased cost of trading driven by high employers’ National Insurance contributions and minimum wage. As a result, McKay said, the firm was “unable to meet its ongoing obligations and the business was simply not viable.”

He continued: “Apex was a highly regarded provider of traffic management services on roads and highways across the UK, and we are working closely with all their customers to help ensure that, where ongoing projects were being delivered, these customers can find alternative suppliers to ensure safe operation of the highways.”

The joint administrators are working with GMG Asset Valuation to maximise the return to creditors from a sale of the firm’s assets, with interested parties and creditors urged to make enquiries directly with Begbies Traynor’s Glasgow office.

In the company’s accounts for the year to March 31 2024, its fixed assets were valued at around £525,000 and current assets at £2.7 million, with net assets amounting to slightly over £753,000.

Rigorous due diligence is more important than ever when acquiring distressed assets

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