The firm, which has traded for 55 years, is one of the country’s biggest suppliers of earthmoving and waste recycling equipment.
Construction plant dealer Warwick Ward was founded in 1970 (file image) (Image: Getty)
A major UK construction plant dealer has entered administration after 55 years of trading in a blow to the industry. Almost all of Warwick Ward (Machinery) Ltd’s 89 staff have been made redundant, according to reports.
Administrators stated that “wider economic headwinds” affecting the construction and recycling sectors were the primary reason for the company’s collapse. Warwick Ward (Machinery) has been described as one of the UK’s largest stockists and suppliers of earthmoving and waste recycling equipment. Its headquarters are in Barnsley, Yorkshire, but also has depots in Bromsgrove, Worcestershire, and Harlow, Essex
Warwick Ward is said to be one of UK’s largest earthmoving and waste recycling equipment suppliers (file image) (Image: Getty)
The firm, which was founded in 1970, appointed administrators earlier this month, The Construction Index reports.
Owner-directors Ashley and Matt Ward sold the company to an employee ownership trust in June 2023.
After transitioning to employee ownership, Warwick Ward recorded a pre-tax loss of £1.3 million, with sales revenue falling by 11% to £45.3 million.
It had previously made a pre-tax profit of almost £680,000 and sales of £51.2 million in the final year of ownership under the Wards, per The Construction Index.
Joint administrator James Lumb said: “Employee ownership trusts (EOTs) can often be highly successful, creating an exit route for shareholders, and bringing long-term operational and cultural advantages across the business.
“However, the additional debt that many such companies take on as part of the sale to an EOT can prove to be a burden further down the line, particularly if trading conditions become difficult.
“In Warwick Ward’s case, the debt accrued as part of its transition to employee ownership was certainly a contributory factor in its difficulties.
“Ultimately, however, it was the wider economic headwinds buffeting the construction and waste recycling sectors that served to place unsustainable pressure on the company’s cashflow, which in turn led to our appointment as administrators.”
He added the “immediate priority” was supporting staff members affected by redundancy, with options being explored for the company’s assets.
It is said Warwick Ward had explored possibilities for refinancing, sale and investment before filing for administration.
