Scaffolding firm collapses with job losses and large debts
FINANCE Wales is owed £235,000 by a south Wales scaffolding firm which was put into administration last week with the loss of nearly 150 jobs.
Barry headquartered SHS Integrated Services, whose core activity was in large-scale industrial scaffolding, collapsed after a challenging two years trading period.
A creditors report is currently being compiled by professional advisory firm Deloitte, who were appointed administrators last week.
SHS Integrated Services was the first company in Wales to receive equity investment from the £2.5bn Business Growth Fund with a £5.4m capital injection to support its growth strategy in 2013.
The business was then known as Swanbridge Hire and Sales (SHS).
In the latter half of 2016, the business negotiated further investment of £1.95m from the Business Growth Fund and other shareholders.
Latest year end audited accounts shows that SHS posted pre-tax losses of £2.2m for 2015 on revenues of £16m.
Finance Wales’ latest investment was just weeks before the collapse of the business, although the terms of the loan gave it a charge over the company’s asset including freehold and leasehold properties and plant and machinery.
A spokesperson for Finance Wales said: “We provided loans to SHS Integrated Services (SHS) in 2014 and 2017.
“Our current exposure is £235,000. We have worked closely with SHS over recent months and we are currently working with the administrators.”
Finance Wales is wholly-owned by the Welsh Government.
Deloitte said that just before its appointment as administrators, 148 employees were made redundant, while 11 employees have been retained to assist with the wind-up of the business.
Richard Hawes and Matt Cowlinson from Deloitte have been appointed administrators.
SHS provides scaffolding, insulation and cladding services to a range of contractors in a variety of industries. With sites stretching across the UK including main bases at Barry, Doncaster and Pembrokeshire,
In a statement confirming the administration, Deloitte, said: “The group will now cease trading while talks are ongoing with potential buyers for the contracts and assets of the Group. This follows a poor trading performance across the past two years, particularly outside of core scaffolding trading activities.
“Management has attributed this downturn to poor pricing of contracts and a lack of control over direct labour cost.”