A MAJOR construction firm has entered administration after 55 years in business.

According to reports, “most” of the staff at the UK company are set to be made redundant.

Warwick Ward Machinery Ltd’s announced the closure, will administrators citing “wider economic headwinds” impacting the construction sector as the main cause of the downfall.

A total of 89 employees are projected to be let go as part of the proceedings.

The company is recognised as one of the UK’s largest stockists and suppliers of earthmoving and waste recycling equipment.

With headquarters in Yorkshire, Warkwick Ward also operated additional depots in Bromsgrove, Worcestershire, and Harlow, Essex.

The company, which was established in 1970, appointed administrators earlier this month, according to The Construction Index.

This comes after owner-directors Ashley and Matt Ward sold the firm to an employee ownership trust (EOT) in June 2023.

Following this transition of ownership, Warwick Ward reported a pre-tax loss of £1.3 million, with sales revenue dropping by 11% to £45.3 million.

In contrast, under the Wards’ final year of ownership, the company posted a pre-tax profit of nearly £680,000 and sales amounting to £51.2 million, as per The Construction Index.

“The additional debt that many such companies take on as part of the sale to an EOT can prove to be a burden further down the line, particularly if trading conditions become difficult,” said joint administrator James Lumb.

While Lumb went on to say the ownership change was “certainly a contributory factor” to the company’s difficulties he ultimately blamed “the wider economic headwinds buffeting the construction and waste recycling sectors”.

He added that these factors placed “unsustainable pressure on the company’s cashflow, which in turn led to our appointment as administrators”.

It has been reported that Warwick Ward had investigated opportunities for refinancing, sale, and investment prior to filing for administration. (The Sun)