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-   -   Hewden in trouble (http://www.ceforum.co.uk/showthread.php?t=8404)

grahams 30-10-2016 05:48 PM

Hewden in trouble
 
Saw this in the Telegraph today:

Hewden, the heavy machinery rental firm, has launched a last-ditch search for fresh backers amid a sudden cash crunch and looming debt repayments.

The company, whose yellow diggers and cherry picker platforms are a familiar site on building projects across the country, needs fresh funds after a sudden downturn in trading squeezed its cash reserves.

It also faces a race against time to refinance £190m of borrowings, which expire in the coming months. With little prospect of any repayments being met, Hewden’s precarious position has raised fears for more than 1,000 jobs at 32 depots across the country.

The company is working with restructuring experts at Deloitte, who are hoping to refinance the business or sell it. Hewden’s most recent accounts, covering the 12-month period to Dec 31st 2014, show that the company made a pre-tax loss of £16.6m on sales of £105.9m. It notched up exceptional costs of £2.2m, attributed to “severance, depot closure costs and other restructuring”, and forked out £8.9m in interest payments during the year.

It has been owned by Sun European, a private equity firm that invests in troubled businesses, since 2010. Sun paid £110m to acquire the business from Canadian firm Finning, best known as one of the world’s largest suppliers of Caterpillar machinery.
The company said: “Hewden has been impacted by market uncertainty following the vote to leave the EU. 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.

V8Druid 30-10-2016 06:04 PM

Re: Hewden in trouble
 
they're beyond insolvent ..... why should they survive :rolleyes:

These big outfits who continue to trade on the back of the fact that debtors'll be unlikely call it, boil my bladder.:mad:

Lesser outfits/traders get wound up .... end of .... if you have no trading capital, you should not be allowed to trade, let alone continue and drag even more folk down with you when the inevitable crash happens. :mad:

JD450A 30-10-2016 06:05 PM

Re: Hewden in trouble
 
Good, now for a few more of these bottom feeding rate dropping firms to sink and it'll be a better world for us all. :)

Redash 30-10-2016 07:16 PM

Re: Hewden in trouble
 
I'm with Rory on this one, Hewdens, Flannery, HE and the like have been driving down the rates over the years, and feeding the agencies, to the point where the smaller plant hire firms, let alone the owner ops, can't get a look in on the bigger contracts. Due to the business model of these large hire firms, standards have dropped in line with the rates, a fact bourne out this summer by the large amount of pictures of machines on their sides.

I personally, will welcome the demise of these huge hire firms

tinydigger 30-10-2016 07:18 PM

Re: Hewden in trouble
 
had a few of our fitters and mangers leave to go to there interlift division will see if there heads pop back in to us soon from what they said to us before they left it was going to be a big player in the lifting game

tinydigger 30-10-2016 07:20 PM

Re: Hewden in trouble
 
Quote:

Originally Posted by JD450A (Post 146910)
Good, now for a few more of these bottom feeding rate dropping firms to sink and it'll be a better world for us all. :)

Quote:

Originally Posted by Redash (Post 146926)
I'm with Rory on this one, Hewdens, Flannery, HE and the like have been driving down the rates over the years, and feeding the agencies, to the point where the smaller plant hire firms, let alone the owner ops, can't get a look in on the bigger contracts. Due to the business model of these large hire firms, standards have dropped in line with the rates, a fact bourne out this summer by the large amount of pictures of machines on their sides.

I personally, will welcome the demise of these huge hire firms

i hope my current and much loved employer is not among these who you wish gone (gap group) as if it is can you hold off the wishes till i am out there door after christmas :D

grahams 30-10-2016 07:28 PM

Re: Hewden in trouble
 
Much as they don't deserve to survive it will be a right pain if they go. My business model relies on getting a garenteed rate nationwide and the same machine wherever I want it so it runs my attachments.
A right pain trying to source local self drive hire at each job.
Graham

JD450A 30-10-2016 07:49 PM

Re: Hewden in trouble
 
Thing is there's a big difference between Nationwide hire and Cutting there nose to spite there face....

CBL are a prime example, I can get a Digger from them for at least 20% cheaper than a Local hire.... there haulage is reasonable but still costs more than picking it up locally. But anything under a Weeks hire and there rate is worse than a local firm... hence we chop and change between using local firms for short jobs and CBL for longer stints.

No one wants to see these lovable cheap self drives go.... I take advantage of them and realistically it's not hard to convince customers (that are worth convincing) that by the time they have paid £25 a day for a 1.5t machine, £80 transport and put fuel and insured it themselves there better off hiring me :)

But a lot of these firms have and do throw machine and operator out for naff all profit.... Hewden tried to train lots of new starts and all it caused was issues because from what I've heard there idea of training was to stick them on a weeks course and throw them out on site!

I was also told not long ago of a local hire center who cross hired equipment from one of the big boys..... the agent for said firm actually had the audacity to show up on site where the machines where delivered and tell the hire centers customer that if they went direct it'd be cheaper.......!

Pees me off and it's the lingering death of general plant hire.... Personally i'd rather my machine rust out than work for peanuts! :)

V8Druid 30-10-2016 07:53 PM

Re: Hewden in trouble
 
Quote:

Originally Posted by tinydigger (Post 146927)
had a few of our fitters and mangers leave to go to there interlift division will see if there heads pop back in to us soon from what they said to us before they left it was going to be a big player in the lifting game

I think you'll find Hewden Lifting/crane hire are a separate entity Andy? :rolleyes:

Regy53 30-10-2016 07:57 PM

Re: Hewden in trouble
 
the rates are still low when you go up the machine range 13 tonne etc is desperate yet things like 13 tonne rollers with a different cost is much better.

My friend wants me to get into hire, It really does not interest me one bit. Its just all so up and down. What does interest me is specialist hire for oddball stuff.

good luck to anybody in hire, and interesting about hewden thats some fleet they have


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