South Coast business recovery specialist Portland Business Recovery has overseen the administration of struggling haulage company PMP-Forward.
As a result of Portland’s appointment, all trucks and trailers were sold and a buyer has been found for the property. This means all creditors will be paid in full with interest, and the shareholder will receive ‘a significant return’, said Portland.
Fareham and Felixstowe based PMP-Forward, which transported items for Debenhams, had been successfully trading since 1992 employing more than 50 staff with an extensive fleet of trucks and trailers. Due to increased competition within the market and rising fuel costs, the company faced trading losses which eventually led to directors taking the early decision to appoint Portland to oversee its affairs.
Portland associate director Stewart Goldsmith commented: “Due to the size and network of PMP-Forward, this was not a straightforward case. The assets within the company consisted of a large book debt ledger, a fleet of over 40 trucks and over 100 trailers and business premises. Our strategy was to protect and realise the value in these assets which will result in creditors of the company being paid in full. I am pleased that by working closely with the company’s directors, accountants and bankers we achieved the best possible outcome overall.”
Portland director Mike Fortune explained: “Although they were an asset rich company, insufficient cash reserves and sustaining losses led to cash flow problems. Cash is the lifeblood of any business and with losses being incurred cashflow difficulties can quickly develop to unmanageable levels. My advice to companies in a similar position is to seek professional advice early from your accountant or Portland.”
Portland said: “Failures in the UK road freight industry and transport and logistics sector has been increasing steadily. Like all industries they are not immune to market changes and are especially vulnerable due to rising fuel cost, skills shortage and business failures within their supply chain which is outside of their control.”