The collapse of Swindon’s OPX Logistics was as a result of a high level of gearing and significant finance repayments, according to its administrator.

In a report to creditors, Leonard Curtis said that since its incorporation in 2017, the haulier had enjoyed several years of profitable trading and significant business growth while servicing supermarkets and large retailers across the country.

It held international licenses in the West and Wales traffic areas and operated up to 75 HGVs.

Despite financial challenges posed by the Covid-19 pandemic, its turnover grew by £4m in 2020.

In 2021, as the business continued to expand, it set up a warehousing division called OPX Distribution, which led to a relocation to “state-of-the-art” leasehold premises in Swindon.

The report said: “By 2022, the company’s turnover had increased to well over £15m and had generated a profit after tax of some £988,000 for the financial year ended July 2022.

“However, the company had also accrued a significant amount of liabilities (over £5m) including unsecured loans and obligations under finance lease and hire purchase contracts.

“This high level of gearing and significant monthly finance obligations started to put a strain on the company’s cash flow.”

Leonard Curtis said its problems were compounded by the start-up costs of OPX Distribution being absorbed from the company’s working capital and that as the primary margin driver within the OPX group, the haulier was under continuous pressure to provide significant inter-company support to OPX Distribution, which remained loss making.

“As a result, the company made a pre-tax loss of £56,000 for the five-month period to December 2022,” the administrator said.

By October 2023, OPX Logistics had provided around £2m to the warehousing business. It looked to agree a time to pay arrangement with HMRC and obtained £250,000 of unsecured funding to assist with working capital requirements, but for the financial year ending December 2023 its losses plummeted to £441,000.

“By May 2024, the company had run up a large debt with its fuel credit supplier and the facility was subsequently withdrawn,” Leonard Curtis added.

“In the absence of alternative suppliers or additional support from existing funders the company was forced to cease trading.”

It entered administration on 5 June.

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