News

Leggett's Transport was trading through administration as MT went to press on Tuesday 7 July. An announcement regarding the future of the firm is expected by the end of the week.

Accounts show that the Bury St Edmunds, Suffolk haulier reported a pre-tax loss for the past four financial years. Its most recent results for the year to 30 June 2008 show a loss of £559,930, on turnover down 14% to £9.5m. In these accounts the auditors  state that the loss, along with other matters, "indicated the existence of a material uncertainty, which may cast significant doubt about the company's ability to continue as a going concern".

Greg Palfrey and Steve Adshead from Smith & Williamson were appointed joint administrators on 3 July.

In a statement, Palfrey says: "Leggett's has been proactive in cutting costs, including reducing the fleet, making redundancies and a pay cut and even turning part of the depot into a truck park to bring in extra money, but that still wasn't enough." He adds: "Leggett's is trading while we negotiate with a potential purchaser."

Official documents show that a Graham Lawrence of Lezayre, Isle of Man, became the controlling shareholder of Leggett's on 2 June.

Lawrence has purchased a 'convertible redeemable preferred ordinary share' for £1,  which entitles him to one vote at any general meeting of the company. The voting rights of the ordinary shareholders are meanwhile suspended.

In a brief telephone call, Lawrence explained to MT that he was unable to say anything further and that all enquiries must go through the administrators. A similar reply came from newly appointed Leggett's MD Christopher Nunn, but both parties indicated that an announcement about the future of Leggett's was likely by the end of this week.

The administrator's statement adds: "It is envisaged that the potential purchaser will take on the remaining staff." MT believes this to be in the region of 70.