A Deeside operator that had been trading for more than 50 years collapsed due to a combination of the pandemic, the war in Ukraine, fuel costs and a shortage of drivers, its administrator said.
Sunhill Transport had expanded from a single-vehicle business that began operating in 1972 to running nearly 30 HGVs, employing 32 staff and generating revenues of £4m by the time of its administration earlier this year.
According to Patrick Lannagan and Conrad Pearson at Forvis Mazars, the haulier established a strong regional presence and maintained a number of long-standing customer relationships.
However, problems first began with the Covid-10 pandemic and it was then hit with rising operating overheads, a continuing pressure on rates and the impact of Russia’s invasion of Ukraine.
“Collectively, these challenges led to reduced profit margins and constrained cash flow,” the joint administrators said.
“During this period, the company also experienced increasing pressure from its creditors.”
Sunhill Transport’s director introduced additional funds to maintain liquidity but increasing financial pressure meant the company was unable to continue trading on a sustainable basis.
Novuna, which provided an invoice discounting facility, contacted Forvis Mazars after the haulier defaulted, raising concerns over its solvency.
Options were discussed but administration was found to be the only appropriate route due to it lacking capital to support ongoing trade or sufficient funding to support a pre-packaged sale: “The company made the decision to cease trading and terminate the employment of its entire workforce, comprising 32 employees,” Forvis Mazars added.
It formally entered administration on 21 May and the firm’s international licence authorising 30 HGVs and 70 trailers was surrendered last month.
