黑洞社区

Hewlett Group鈥檚 managing director has criticised the civil engineering firm鈥檚 former bank Lloyds for its decision to call in the administrators, damaging the firm鈥檚 reputation, writes Vern Pitt.

Four of Hewlett鈥檚 subsidiaries, including Hewlett Civil Engineering, were placed into administration last week. Senior managers then rescued the firm days later with a management buyout, saving 300 jobs.

Administrator BDO said it had been called in to administer the firms, which together had a turnover of 拢42m in 2012, after 鈥渢he companies encountered financial difficulties as a result of the challenging economic climate over the past few years鈥�.

Speaking to 黑洞社区, Alan Cooper, Hewlett Group managing director 鈥� who with founder John Duffy now owns the company following the buyout 鈥� said the firm鈥檚 bank had called in the administrators over debt of less than 拢5m. He said the move was 鈥渉ostile鈥� and that Hewlett had already been 鈥渓ooking for other funders鈥�.

鈥淭hey gave us no warning that that was what they would do,鈥� he said. 鈥淚t has been very damaging to us. The reputation has been severely damaged. We regretthat decision very much and we cannot turn the clock back. We are trying to repair a lot of that damage.鈥�

Cooper said a drop in residential property prices, which had affected the group鈥檚 property arm, was the main cause of the debts that led to the bank calling in the administrators.

He said the firm was paying the debt down but 鈥渃learly鈥� it was not fast enough for the bank.

Hewlett is now no longer in the housing business having left its housing arm 鈥� Portford Homes 鈥� in administration.

The firm was forced to shut down its work on all its sites when the administrators were called in. Cooper said work on some contracts, including a gas storage facility in Cheshire and infrastructure work for developer Bellway in Sheffield, had now restarted under the new firm.

But Cooper said it could take up to two weeks for all of the old firm鈥檚 contracts to be novated to the new firm. He said he was unsure if all contracts would eventually come across.

Hewlett鈥檚 work on the 拢600m redevelopment of Birmingham New Street station (pictured) is one contract yet to be signed over. 鈥淚 cannot speak for [project manager] Mace or Network Rail; they may have options they are considering,鈥� said Cooper.

He said he saw the 鈥渕ost exciting鈥� opportunities for growth in the Middle East. Cooper said there were already staff based in the region developing leads. 鈥淕rowth is likely to be at a very low percentage in the UK which is why the overseas market is very attractive,鈥� he said.

A Lloyds spokesperson said calling in administrators was always a 鈥渓ast resort鈥�.

鈥淲e had worked with the company鈥檚 management for a number of months to try and find a consensual solution which would put the business on a sounder financial footing. We provided considerable support 鈥� 鈥� through several temporary increases in facilities and a waiving of covenants,鈥� he said. 鈥淯nfortunately, it did not prove possible to restructure without a formal insolvency process.鈥�