Another haulier has fallen victim to the ongoing economic downturn, with Immingham-based haulier L&M Transport (UK) calling in the administrators this week.
L&M Transport (UK) was established in 2007 and has an operating licence for 18 trucks and nine trailers and employed around 20 staff.
In its most recent accounts for the year to 29 June 2022, the company reported assets of £13,441, down from £48,911 in the previous year.
The North East Lincolnshire firm has appointed Andrew Mackenzie and Laura Baxter, both of Begbies Traynor, as joint administrators.
Mackenzie told MT: “As with a number of transport companies in the Immingham area and the rest of the UK, it simply was not viable and has closed and the assets are being sold.”
This is the latest in a litany of haulier administrations across the country this year. Companies that have failed since the New Year include Norfolk haulage firm Bomfords Group; Kent-based FORS Gold haulier HMF Services (Transport); Kirriemuir haulage firm AAD Transport; Anglesey-based logistics and shipping company Gwynedd Shipping Limited; Youngs Transportation & Logistics; North West Cargo; and Bridgetime Transport Limited, one of the biggest employers in Cwmbran, South Wales.
The government’s Insolvency Service recently reported that 2,002 companies were declared insolvent in December, up 2% year on year and the highest December level for four years.This sees the total for 2023 rising 14% to 25,159, up from 22,129 in 2022.
Lindsay Hallam, FTI Consulting senior managing director of the corporate finance and restructuring team, said said there will be little if any respite in 2024.
“Despite expected headline inflation falling to near target levels in 2024, consumer prices remain 25% higher than 2021 levels, putting pressure on consumer finances and anticipated demand,” she said.
“Further, the impact of higher interest rates and debt availability are yet to be felt by many businesses who are still to refinance.
“The combination of these factors will lead to an increase in business distress and insolvencies in 2024,” she added.
Attempts to contact L&M Transport have yet to receive a response.
