End of the road for DavyMarkham as Sheffield engineer is wound down
Historic Sheffield engineering firm DavyMarkham has been closed down for good after administrators were unable to find a buyer.
Officials are selling the Darnall firm’s assets and hope to make more than £700,000 from machinery, according to a report.
The company was famous for its giant workshop and huge array of machine tools.
Administrators FRP Advisory had the firm’s plant and machinery valued, and anticipate the sale will ‘settle the Close Brothers’ debt,’ believed to be £768,309.
FRP filed a report at Companies’ House which reveals DavyMarkham had two large contracts and 13 small ones when it hit cash flow problems.
But there were insufficient funds to complete the contracts, taking into account ‘potential supplier ransom positions and retention of employees’. FRP put DavyMarkham on sale for nine days on February 20 but no offers were received.
The report adds: ‘As payroll was overdue and the company did not have the funds, the majority of employees (109) were made redundant on February 27.’
Some 28 were retained to complete a contract. But they have now gone.
Administrator Yasmin Bhikha said: “We are now winding down the remainder of the organisation, while securing buyers for certain assets in order to maximise value for creditors.”
The heavy engineering specialists can trace its name back to 1830.
Statements show turnover fell from £11m in 2015 to £4.6m in 2017 and it had made a net loss for the last four years.
The report states: ‘Whilst revenue levels were high, the company experienced cash flow difficulties due to income being irregular as payments on larger projects were received upon achieveing milestones and not on set payment days’.
A £280,000 payment due in February was disputed ‘in full’ adding to the firm’s woes. And a utility provider owed £300,000 threatened disconnection.
FRP states it received £137,924 from debtors and invoiced for £79,537 for work in progress. Bibby recovered £55,000.
Employees’ pay, pension and holiday pay, totalling £255,487, are set to be paid at 87p in the pound.
FRP estimates its charges will be £588,905.