Lincs Lifts to restructure
UK based aerial lift rental company Lincs Lifts has filed a Notice of Intention to appoint an administrator.
A letter from the company states that it has been experiencing financial difficulties and has been taking advice from insolvency practitioners Begbies Traynor. The letter signed by managing director and co-owner Wayne Grainger said: “We are sorry to inform that Lincs Lifts Ltd is currently facing some financial difficulties and in light of such has taken professional advice from its accountants and subsequently advice from Begbies Traynor Group.”
“Begbies Traynor Group are a specialist professional consultancy company who have been instructed to advice the company on its financial position, which includes rescue options, should that be possible. This advice is currently on-going, and we will of course provide you with an update once the advice has been finalised. The aim of the company is to achieve an outcome in the best interests of all employees, creditors, the company and directors.”
We asked Mr Grainger if he wanted to contribute or add anything to the article we were preparing, such as context, cause etc... and so far he has preferred not to comment on the situation. The letter refers recipients to Louise Longley, an insolvency director at Begbies Traynor, Leeds, for any further information. She has so far not returned our call.
Lincs Lifts is based in Scunthorpe, North Lincolnshire and was incorporated in January, 2015. It has a young fleet of booms, trailer lifts, scissor lifts, spider lifts, and mast booms from leading manufacturers and also runs an IPAF training centre.
It appears to have been struggling to pay its debts this year, having expanded its fleet rapidly between 2016 and 2018, increasing its assets between 2017 and 2018 alone by a factor of more than 3.4, leading to a steep rise in its current liabilities in 2018, which led to a liquidity issue.
While the company has confirmed that it is in discussions with Begbies Traynor and is referring all requests for information to them and has filed the Notice to Appoint – there may yet be a chance that it will find an alternative route out. The onset of the current Covid 19 crisis is almost certain to exasperate the situation, and unless a buyer or investor can be found, the appointment looks likely to go ahead.
Going through a process such as this is challenging and stressful for the owners the employees, and its suppliers at the best of times, in the current climate it really does not bear thinking about, and hopefully a positive way forward for the business and its staff will be found in the coming weeks.
We will of course update this item when as soon as we hear from the company or Begbies Traynor.