Former employees of a Birmingham contract haulier now in administration have been ordered to pay almost £40,000 in costs relating to road traffic accidents.

Contact Transport obtained court judgement orders against drivers and subcontractors who were at fault in the collisions whilst employed by the company or engaged in business and they have been ordered to reimburse the haulier.

The detail is contained in an administrator’s progress report, which added that between 20 April 2017 and 19 October 2017 just £120 out of £39,458 was received.

Contact Transport went from a £1m pre-tax profit to a £100,000 loss in 20 months.

Creditor pressures, winding up petitions, as well as “substantial vehicle damage and insurance costs” resulted in cash flow problems, before secured charge holder Bibby Financial Services appointed an administrator on 13 April this year.

It is estimated that Bibby will have a shortfall of £600,000 owed to it and dividend prospects for unsecured creditors is anticipated to be nil.

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