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Birmingham Post
Birmingham Post
Business
Tom Keighley

Harpers Environmental collapses into administration with the loss of 80 jobs

An environmental services firm operating across Yorkshire and the North East has gone into administration with the loss of 80 jobs.

Harpers Environmental ran centres in Billingham, York and Sheffield and administrators from RSM say they are working to find alternative providers for customers of its waste management, cleaning and emergency spill response services. All work - including by Harpers' sub contractors - has ceased.

The latest accounts for the loss making firm show turnover fell considerably in the year to the end of March 2021, from £9.7m to £6.9m. Despite describing challenging trading conditions on the back of the pandemic, at the time, Harpers referred to an uplift in work since the financial year end and said it was well placed to capitalise on a stronger market going into 2022.

Read more: Record profits at Barratt come with signs of slowing housing market

Writing in those accounts, director Nick Harper said: "Though the company achieved considerable success in its operational turnaround during the period, the pandemic resulted in a generally suppressed trading environment which impacted activity levels and revenue. The company is a provider of essential services to clients operating in a range of critical industries including utilities, food processing and infrastructure.

"As such, the company has continued to operate throughout the Covid-19 pandemic though, as experienced in the majority
of sectors, activity levels have been generally suppressed. In aggregate, revenue was reduced by approximately 28% in the
year ended March 31, 2021 relative to the prior financial year. The company experienced reduced activity levels during the
first and third national lockdowns in particular, as a result of project delays, staff and client personnel absence, and the
impact of the various Government-imposed restrictions on the company's ability to progress and secure opportunities.

"It is worth noting that, in addition to the impact of the pandemic, the reduction in revenue relative to the prior financial year can
also partly be attributed to the company's proactive reduction in decommissioning work undertaken."

Gareth Harris, RSM Restructuring advisory partner and joint administrator, said: "Harpers Environmental Limited has been successfully trading for over 65 years and despite recently signing some large profitable contracts has been unable to address historic losses due to the pandemic and collect the cash required to continue trading. Whilst we have sought a buyer for the business in a limited timeframe it has not proved possible to secure a going concern sale and sadly the directors have had no option but the shut the business down and appoint the Joint Administrators.

"As Joint Administrators, we remain keen to discuss a sale of assets with any potential interested parties. The Joint Administrators and the directors are currently trying to work with customers to ensure a smooth handover of contracts to alternative providers."

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