Welsh haulier Scott Commercials has closed down with the loss of 10 jobs, almost a decade after it was first established.
The Ebbw Vale firm had ceased trading at the end of June and, according to liquidator Paul Wood at Begbies Traynor, the soaring price of fuel was largely to blame for putting the brakes on its business.
He added that recent rises in PAYE, Adblue and the cost of tyres had also created significant cash flow problems for the haulage firm, which provided road freight services across the UK.
Wood said company fuel bills rose by approximately £4,756 net per week between June 2021 and June 2022 and fuel price inflation was now creating “immense pressure” for many transport businesses:
“The last 12 months has been an incredibly difficult time for hauliers, who have seen their overheads increase dramatically and rapidly,” he said. “Despite efforts to reduce the impact, these challenging trading conditions proved untenable for Scott Commercials, and we will be working with the director to wind up the business and recover any assets on behalf of creditors.”
Wood added: “The rapid rising costs of raw materials does illustrate the need for business owners and directors to seek advice at an early stage if they are experiencing financial challenges. There are sometimes steps that can be taken which will help to place a company on a more secure footing - and reduce the risk of liquidation.”
According to a statement of affairs lodged at Companies House, trade creditors not including banks, lenders and HMRC are estimated to be owed just under £29,000.