The business and assets of Dodds Roofing Services in Driffield have been sold out of administration – securing the jobs of 15 staff plus additional subcontractors.
The business was placed in the hands of joint administrators Andrew Mackenzie, Dean Watson and Gary Lee of Begbies Traynor on 27 January, and a sale to a third party, national roofing company Avonside Roofing, was quickly completed.
Having traded for over 19 years, the family business had established a strong reputation and provides specialist roofing contractor’s services throughout East, West and North Yorkshire. Its clients included contractors and developers, architects, surveyors and local authorities as well as private individuals.
Documents show that the business was split into three main sectors – roofing contracting, solar and biomass.
The company employed 30 staff and its annual turnover was in the region of £5 million.
Documents state: “The company began to experience financial difficulties as a consequence of a number of factors, including disputes relating to a number of biomass jobs (resulting in disputed debts of £300,000 and the write off of work in progress) and a general decline in turnover. As a result, in early January, the company realised that they would not be in a position to pay debts as and when they fell due.
“The company experienced creditor pressure which would have ultimately resulted in the commencement of winding up proceedings, withdrawal of credit terms from suppliers, commencement of legal actions and the issue of county court judgements.”
The directors advised that there was one interested party, Avonside Roofing Limited, who has made previous enquiries and performed due diligence with the intention of acquiring the shares of the company or the business as a going concern.
A marketing campaign was carried out to generate further interest. Six other potential interested parties did not progress their interest.
Avonside offered £30,000 for the stock, vehicles and various items of plant and machinery, office equipment and computer equipment and the offer was recommended to be accepted.
Part of Avonside Group Services based in Heywood, Lancashire, Avonside Roofing provides expertise for local authority work, new build, refurbishment, construction, repairs and maintenance.
“This is a well-established and viable business with a loyal customer base which suffered from financial problems following recent bad debts,” said joint administrator Andrew Mackenzie from the firm’s Hull office.
“We were able to step in and swiftly find a purchaser for the business, preserving its value by acting quickly to avoid disruption and providing a seamless transition.
“As part of a large national company which is a market leader in the roofing sector, the business now has a more secure future which is great news for its staff, subcontractors and customers. The deal is the best outcome, enabling a well-established local business to continue to trade.”