After 55 years of operation, Warwick Ward (Machinery) Ltd, a leading UK construction plant dealer, has entered administration, resulting in a severe blow to the construction and recycling industries. Nearly all of its 89 employees have been made redundant as the company succumbs to challenging economic conditions.
Known as one of Britain’s largest suppliers and stockists of earthmoving and waste recycling equipment, Warwick Ward operated from its Barnsley headquarters in Yorkshire with additional locations in Bromsgrove, Worcestershire, and Harlow, Essex. The Bromsgrove depot at Harris Business Park on Hanbury Road was a crucial hub for sales, equipment hire, parts, and servicing.
Founded in 1970, Warwick Ward underwent a significant ownership change in June 2023 when owners Ashley and Matt Ward transitioned the business to an employee ownership trust (EOT). Despite the ownership shift, the company posted a pre-tax loss of £1.3 million and experienced an 11% drop in sales turnover to £45.3 million. This contrasted sharply with the previous year’s pre-tax profit of nearly £680,000 and sales of £51.2 million during the Wards’ leadership.
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Joint administrator James Lumb commented on the challenges faced: “Employee ownership trusts can offer long-term operational benefits and serve as an exit strategy for shareholders. However, the debt incurred during such transitions can become burdensome if economic conditions worsen. In Warwick Ward’s case, the debt taken on during the EOT transition contributed to financial difficulties, but the primary cause was the broader economic headwinds impacting the construction and waste recycling sectors. These factors severely strained the company’s cash flow, leading to our appointment as administrators.”
Lumb emphasized that the immediate focus is supporting affected employees and exploring opportunities to maximize the value of the company’s assets. Prior to administration, Warwick Ward had been actively seeking refinancing options, potential buyers, and new investments.