A prominent dealer of construction equipment in the UK has entered administration after operating for 55 years, causing a significant impact on the industry with the expected redundancy of most of its workforce.
Reports indicate that nearly all 89 employees of Warwick Ward (Machinery) Ltd have been laid off as a result of challenging economic conditions affecting the construction and recycling sectors. The company, known for being one of the largest suppliers of earthmoving and waste recycling machinery in the UK, is headquartered in Yorkshire and has depots in Worcestershire and Essex.
Established in 1970, Warwick Ward appointed administrators recently after being sold to an employee ownership trust by owner-directors Ashley and Matt Ward in June 2023. Following the shift to employee ownership, the company reported a pre-tax loss of £1.3 million, with a decrease in sales revenue by 11% to £45.3 million compared to the previous year under the Ward’s ownership, which saw a pre-tax profit of nearly £680,000 and sales amounting to £51.2 million.
Administrator James Lumb noted that while employee ownership trusts can bring long-term benefits, the additional debt taken on during the ownership transition contributed to Warwick Ward’s financial challenges. The company faced unsustainable pressure on its cash flow due to economic headwinds affecting the construction and waste recycling sectors.
Lumb emphasized the immediate focus on supporting affected staff during the redundancy process and exploring options for the company’s assets. Warwick Ward had reportedly explored opportunities for refinancing, sale, and investment before entering administration.