SL Transport’s collapse can be directly linked to soaring inflation which led to it suffering a loss of more than £200,000, according to its administrator.
The company, which began trading more than 30 years ago in 1991, focused on moving goods between production facilities, warehouses, retail outlets and door-to-door deliveries.
It held an international licence for 19 HGVs and eight trailers.
KBL Advisory said the haulier obtained an invoice finance facility to assist with cash flow but during 2022 it was then battling sky-high inflation, which significantly increased direct costs and administrative expenses.
In the year ending 31 January 2023 it reported a loss of £208,800.
In a report to creditors of the business, which had a registered office in Warrington but traded out of four bases in Swindon, Wootton Bassett and Fairford, Gloucestershire, KBL said: “The company’s cashflow and trading has continued to worsen since then, with the company falling into arrears with finance companies and HM Revenue & Customs.”
KBL was approached by both SL Transport and its invoice finance firm in June 2024, but its financial position did not improve sufficiently and discussions were held with the directors because it had insufficient working capital to allow it to continue trading in the short to medium term.
Management accounts published by KBL showed that the operator saw turnover decrease by 35% between the end of 2022 and the end of 2023.
KBL was appointed administrator on 30 August and all employees were made redundant on this date.
The administrator said it was unable to rescue the business as a going concern due to its financial position and it was unable to conclude a sale of the business and so it is now in the process of realising property in order to make a distribution to one or more secured or preferential creditors.
“There will be insufficient funds to pay a distribution to secondary preferential or unsecured creditors,” KBL added.
