09.08.2023

Aspire administration and acquisition

UK rental company Aspire Platforms/LTS appointed an administrator on Monday, and agreed a pre-pack deal with London based The Tool Hire Centre, which is owned by Contractors Plant Hire (Reading) and Bob Overy. Contractors Plant Hire is ultimately owned by the other principal in the deal, Jonathan ‘Jon’ Stevens.

The two have essentially acquired the assets and ongoing business of Aspire, through a dormant company named X-Hire. The business will be renamed, but in the meantime all staff from Aspire and LTS (London Tower Service) have transferred to the new company, including founder and manager Vinnie Rourke who, we understand, will have a stake in the new business.

Speaking to Vertikal.net Jon Stevens said that they had no prior connection with Aspire, apart, perhaps, from some occasional rehire business, but approached the directors as soon as he learnt of Aspire’s ‘Application to appoint an administrator’ last month. As a result, the transaction has been put together rapidly, thus the absence of an ongoing trading name etc.

We believe that there were a dozen or so interested parties, but Stevens and Overy were able to bring sufficient funding to the deal and move quickly. Asked what went wrong with Aspire, Rourke stated that it was a mixture of things, but acknowledged overly rapid growth and not enough funding, coupled with a challenging six months of trading.

Initially the Aspire business will operate as a sister company to The Tool Hire Centre, and maintain its three locations - Leigh and Wakefield in the north of England and Rainham east London - although the availability of those locations has, we understand, yet to be fully confirmed. There are clearly opportunities in the greater London area where the three companies will have four locations.

When asked about creditors, Stevens acknowledged that this is/was the toughest part of the transaction, especially having been on the other end of such deals in the past. However, he says they have already managed to speak to a good few suppliers and have so far had a decent response and hopes that they will work with the company. The reaction from customers has been more positive, with few wanting to send their equipment back. They are now being transferred to the new company - rentals prior to the takeover will, of course, be invoiced and collected by the administrator, Mazars. (Update Note:since this article was published we have had calls from significant suppliers/creditors who have not been contacted at all.)

The Tool Hire Centre was set up by Bob Overy and Jonathan Stevens in 2018, it is managed day to day by Overy who joined the venture having worked with Charles Wilson and before that Speedy. Stevens has a financial background having worked with Mitsui & Co, Morgan Stanley and then as a oil trader at Goldman Sachs. The company operates from three locations in London: Aldermaston to the west, Maidstone to the east and Thurrock to the north. It runs a modest powered access business, largely focused on low level platforms, including push arounds and mast type lifts. It also rehires larger equipment as required to meet the demands of regular customers. It hopes that the acquisition will of course provide a substantial boost to its powered access business.

Contractors Plant Hire (Reading) operates from two locations - Tadley to the north of Basingstoke and Rochester in Kent, on the east side of London. It offers a range of earthmoving and general equipment rental including fixed frame telehandlers. In total the companies generate around £10 million of revenue and have a solid balance sheet with a tangible net worth of between £5 and £6 million and working capital of more than £800,000. Although the Tool Hire Centre went through a period last year and into the start of this year, where it was taking its time to pay suppliers, Stevens has confirmed that the policy now is to pay within and average of 45 days.

Vertikal Comment

It was just about inevitable that the Aspire business would be rescued through a pre-pack administration, and that all unsecured creditors would end up writing off what they are owed. It might come as some small comfort - perhaps - that in this case it is not the same people dumping their debts and starting up a new company free of their old debt load. Although the old rule was that failing companies were wound up, creating more 'space' in the market for those who survived. Speaking with Stevens though, it sounds as though he has a sound plan and will run a decent operation.

It is interesting to note that the Tool Hire Centre was established in 2018 as was Aspire, and while it was never cited as one of the fastest growing private companies in the UK, it is still here and growing, while Aspire is not. Perhaps that says more about the new owners than anything. The proof, as they say, is in the eating.