The administrator for contract hire and rental firm Axis Fleet Management said it now looked likely both former staff and trade creditors will receive some of their money back.

This reversal in fortune follows a report from FRP Advisory Trading that came out last year and which warned that preferential and unsecured creditors probably wouldn’t be paid.

But in its latest summary, FRP administrator Miles Needham said preferential creditors’ claims, which relate to staff arrears of pay, unpaid pension contributions and holiday pay, totalled £29,000 and “should be settled in full.”

He said: “This outcome is in line with the proposals and an improvement from my previous progress report.”

Needham also said that “better than anticipated realisations” meant that there will probably be a small distribution to unsecured creditors too.

He added: “The quantum of the dividend will be dependent upon the final costs of the administration and the subsequent liquidation, as well as the quantum of claims received and agreed.”

Axis entered administration in May 2019 after “challenging trading conditions resulted in cash flow difficulties”.

Despite efforts to find a buyer for the business, a sale could not be achieved.