Argyllshire Advertiser

Council out in cold as gritter firm hits skids

- Exclusive by Colin Cameron editor@@argyllshir­eadvertise­r.co.uk

As winter tightens its grip, the safety of Argyll’s roads is up in the air after a firm hiring gritting lorries to the council announced it was entering administra­tion.

Bristol-based Gulliver’s Truck Hire last week reported that steps had been taken to appoint an administra­tor following ‘difficult trading conditions’.

In a letter to staff on November 27, the company's managing director, Philippe Harding, said that while a number of potential buyers had been identified for the business, ‘the company has been unable to secure the continued support of a small number of key creditors to allow sufficient time to progress that interest. As a result, the directors have had little option but to file a notice of intention to appoint administra­tors of court’.

While the administra­tion process goes on, Gulliver’s will continue to trade, though with ‘constraine­d cashflow to conserve the assets of the company in so far as possible for the benefit of creditors’.

In 2017, the company reported a drop in sales and slipped into the red.

In the year to April 30 2017, turnover is reported to have slipped to £94.8m from £95.2m a year earlier.

Gulliver’s also suffered a pre-tax loss of £200,494 for the period, after generating pre-tax profits of £4.4m in 2016.

Mr Harding said at the time: ‘Competitiv­e pressure in the UK is a continuing risk for the company, which could result in the loss of sales from key customers.’

A spokespers­on for Argyll and Bute Council said on December 5: ‘We have a oneyear contract with Gulliver’s and we have already begun putting alternativ­e plans in place. We, like other local authoritie­s who contract with them, will work with the appointed administra­tors to lessen the impact of the situation. This should mitigate against any impact on our winter gritting service throughout Argyll and Bute.’

The Argyllshir­e Advertiser contacted Gulliver’s for a comment, to be told that no-one was willing to make a statement at this stage.

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