Warwick Ward Machinery Ltd enters administration as ‘most staff made redundant’

Warwick Ward (Machinery) Ltd has been described as one of the UK’s largest stockists and suppliers of earthmoving and waste recycling equipment with depots across the country

A leading UK construction plant dealer has gone into administration after 55 years in business, dealing a significant blow to the industry with ‘most’ of its staff set to be made redundant.

Nearly all of Warwick Ward (Machinery) Ltd’s 89 employees have been made redundant, as per reports. Administrators cited “wider economic headwinds” impacting the construction and recycling sectors as the main cause for the company’s downfall.

Warwick Ward (Machinery) is recognised as one of the UK’s largest stockists and suppliers of earthmoving and waste recycling equipment. The company is headquartered in Barnsley, Yorkshire, with additional depots in Bromsgrove, Worcestershire, and Harlow, Essex.

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The company, established in 1970, appointed administrators earlier this month, according to The Construction Index. Owner-directors Ashley and Matt Ward sold the firm to an employee ownership trust in June 2023, reports the Express.

Following the transition to employee ownership, Warwick Ward reported a pre-tax loss of £1.3 million, with sales revenue dropping by 11% to £45.3 million. In contrast, under the Wards’ final year of ownership, the company had previously posted a pre-tax profit of nearly £680,000 and sales amounting to £51.2 million, as per The Construction Index.

Joint administrator James Lumb commented: “Employee ownership trusts (EOTs) can often be highly successful, creating an exit route for shareholders, and bringing long-term operational and cultural advantages across the business. However, the additional debt that many such companies take on as part of the sale to an EOT can prove to be a burden further down the line, particularly if trading conditions become difficult.

“In Warwick Ward’s case, the debt accrued as part of its transition to employee ownership was certainly a contributory factor in its difficulties. Ultimately, however, it was the wider economic headwinds buffeting the construction and waste recycling sectors that served to place unsustainable pressure on the company’s cashflow, which in turn led to our appointment as administrators.”

He emphasised that the “immediate priority” was to provide support for staff members affected by redundancy, while exploring options for the company’s assets. It has been reported that Warwick Ward had investigated opportunities for refinancing, sale and investment prior to filing for administration.