AAD Transport entered administration after HMRC presented a winding up petition for an unpaid VAT bill of £2.2m, a report to creditors has revealed.
The Kirriemuir-based haulage firm has now closed down with the loss of 65 jobs after attempts to sell the business – which Begbies Traynor described as “profitable” – failed.
In its report, the administrator said the haulier had consistently outperformed the wider market since its incorporation in 2011, offering transport services to 345 customers across the UK as well as in France and Spain.
However, Begbies Traynor said Brexit caused the company to lose cross-border trade and operating costs rose with the price of fuel:
“Furthermore, the lack of HGV drivers was a significant challenge for the sector in 2021 and 2022, with long-term driver availability impacting the company’s ability to maintain customer contracts,” the report said.
“Each of these factors have reduced profit margins and led to cashflow struggles for the company.
“The board of directors became aware of the rising liability due to HM Revenue & Customs and coupled with the balances due to suppliers and finance companies, they realised in early 2024 that the company’s cashflow could no longer sustain the monthly repayments,” it added.
Begbies Traynor said that when it was appointed, it became apparent the company could be sold as it was a profitable business with experienced employees and longstanding contracts.
In the year to March 2023, accounts showed it had turned over £8.1m and gross profit was £407,000.
However, it made net loss after tax of £416,000.
Under the guidance of the administrator, from 6 February to 26 February 2024 management accounts showed turnover was £542,000 and it had made a net profit of £174,000.
But despite undertaking what it described as “an extensive marketing campaign” it could not find a buyer.
More than 10 interested parties were sent further information relating to a potential sale and two offers were received to buy AAD, but Begbies Traynor said: “Given the tight timescales involved in selling the business and assets and ensuring the smooth continuity of service to both customers and to the employees (despite financial terms being agreed for the sale of the business by our agents GMG, as a going concern, to the preferred bidder) the preferred bidder would not commit to the completion of a sales contract, therefore it was not possible to conclude a sale of the business.”
The haulier closed down at the end of February.
The administrator added that estimated unsecured creditor liabilities were around £396,000 but this was likely to change once claims were received.
“Based on realisations to date and estimated future realisations there will be insufficient funds available to enable a dividend to be paid to the unsecured creditors,” it added.
