Hewlett buyout rescues hundreds of jobs

The Leeds-based business had been placed in the hands of administrators at the start of the week. Hewlett said around 300 jobs have been rescued as a result of the deal, which it announced yesterday.

Hewlett said that its management team was to acquire the assets, retain the employees and keep the operation running. Managing director Alan Cooper and John Duffy own the new company.

Mr Duffy, now a consultant to the firm, was previously its chairman and owned Hewlett before it went into administration.

Mr Cooper said: “We are extremely disappointed by the bank’s decision to call in the administrators. It was a hostile move and a judgement which was premature and not backed by the directors.

“However, I’m pleased that the acquisition of the business and assets has been completed so quickly, ensuring the future of the business and of its employees.”

A spokesman from Lloyds TSB, Hewlett’s bank at the time of administration, said: “Administration is always a last resort and we have worked with the company’s management for a number of months to try and find a consensual solution which would put the business on a sounder financial footing.

“We have provided considerable support, for example, through several temporary increases in facilities and a waiving of covenants.” But he said it “did not prove possible to restructure without a formal insolvency process”.

Audit, accounting and business services firm BDO said it was appointed as the administrator over Hewlett Civil Engineering, Hewlett Rail, Hewlett Plant Hire and Portford Homes on Monday.

Paul Bates, joint administrator and a business restructuring partner at BDO, said at the time: “The companies encountered financial difficulties as a result of the challenging economic climate over the past few years. Turnover has fallen from about £62m in 2009 to about £42m in 2012.”

Commenting on the company’s financial position over the last few years, Mr Cooper said: “The construction arm of the business has been profitable, as statutory accounts will demonstrate, however the group was adversely affected by the property crash and suffered a legacy debt as a result of the property division of the business.

“Turnover peaked at £62m in 2009 and although suffered a decline, the business was still profitable in 2009, 2010, 2011 and 2012.”

Hewlett said that the buyout means the business will continue to trade as Hewlett in future and it said it hopes “most contracts held will be bestowed to the new company, helping to protect many of the jobs”. Mr Cooper said there are currently no plans for redundancies.

The resurrected firm will continue to operate from the head office at Thorpe Park in Leeds and its training division will also remain in operation at Cross Green.

Mr Cooper added: “I am extremely grateful for the support of the staff and clients in what has been a difficult few days for the company, and remain confident the business will soon regain its momentum.

“Hewlett is a 25-year-old business with a strong identity and successful track record. Renewed independence will enable us to continue to develop the business in the direction that we choose and respond quickly to a challenging market whilst focusing on the needs of our clients and our employees.

“We look forward to continue to serve our core client base in the UK, while also looking towards opportunities overseas.”

Hewlett, now officially called Hewlett Construction, said it is no longer banking with Lloyds TSB.

The firm, which has been trading since 1987, also operates from offices in Leamington Spa and Perth and has in recent times counted Lend Lease, SSE and Network Rail among its clients.

Its recent contract wins include a deal for The Forestry Commission for construction work at the National Arboretum at Westonbirt in Gloucestershire and an appointment by bus operating firm First Glasgow to provide civil engineering services at the Gushetfaulds depot.

In recent times it also won a multi-million pound contract which forms part of the redevelopment of Birmingham New Street station.

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