A West Yorkshire groundworks company has been sold out of administration in a pre-pack deal, saving the jobs of its employees
YPP Groundworks & Civils Ltd, based in Otley, West Yorkshire, has been acquired by Yorkshire Pro Paving Limited.
Steven Wiseglass, director at Inquesta Corporate Recovery & Insolvency, and Joanne Hammond, partner in Begbies Traynor, were appointed as joint administrators of the groundworks company earlier this month.
YPP Groundworks & Civils, incorporated in 2014, won a series of awards and built a solid reputation undertaking groundworks for domestic and commercial customers in the public and private sectors.
In March 2022 it generated turnover of £5.7m. However, it experienced pressure on its cashflow due to a large contract being impacted by the pandemic alongside rising material prices.
Mr Wiseglass said there was no prospect of securing new funding for the business.
He commented: “Following our appointment, a number of expressions of interest were made to acquire the business, but only one acceptable offer was received.
“The sale represents a better outcome than the alternative of placing the business in liquidation, as it safeguards the jobs of its employees and its existing contracts.”
