Hewden launches urgent search for backers as debt woes stack up
Digger firm Hewden has launched an urgent search for new backers amid money concerns which could put more than 1,000 jobs at risk.
The company, which rents diggers, cranes and other heavy machinery to building sites across the UK, is dealing with a cash shortage which it blames on “market uncertainty following the vote to leave the EU”.
Hewden has been working with Deloitte to either refinance or sell off the business. However, with £190m of borrowings set to expire over the next few months, the firm has stepped up its efforts to find new backers in an effort to meet its debts and protect its 1000-odd employees.
“Hewden has been impacted by market uncertainty following the vote to leave the EU,” the company said in a statement. “The vote has adversely affected a number of large construction and capital investment projects.
“The company is in constructive dialogue with stakeholders to resolve the situation in a consensual manner and is optimistic that a positive solution will be found.”
“The company is working with its advisers Deloitte to reach agreement with lenders on an extension of its debt facilities, whilst also testing market appetite for a sale of the business.”
According to Hewden’s most recent accounts, the company made a pre-tax loss of £16.6m in 2014 on sales of £105.9m. In that same year, it accrued “exceptional costs” of £2.2m in severance, depot closure costs and other restructuring, and paid a whopping £8.9m in interest payments.
Hewden is wholly-owned by private equity firm Sun European, which bought the firm for £110m in 2010.