International transport firm S&J European Haulage collapsed due to a combination of rising fuel and labour costs and the loss of a million-pound contract, its administrator has revealed.
The financial performance of the company, which traded out of a Melton Mowbray operating centre and held a licence authorising 45 HGVs and 80 trailers, began to be affected 18 months ago as inflationary price pressures started to bite, according to Alvarez & Marsal.
In a report to creditors, the administrator said that the rising costs eroded the haulier’s margin and put pressure on its working capital facility.
The report also said: “This situation was further compounded by the loss of a significant customer during 2023.
“This specific customer contributed more than £1m of the company’s annual turnover in the previous financial year and the company was not able to replace that lost revenue with similar margin work.”
A summary of S&J European’s financial performance provided by Alvarez & Marsal showed that in the year ending 30 November 2023, turnover fell to £10.5m from £12.7m in the previous year and it made a £408,000 loss.
Attempts to prop up the business through stakeholder investment, followed by an accelerated merger and acquisition process both led to nothing and the haulier was placed into administration on 26 March, with 82 employees made redundant.
“Based on current estimates, it is highly unlikely that there will be a dividend to unsecured creditors,” the report added.
