Silverdell division saved from administration

Grant Prior 11 years ago
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Demolition, scaffolding and asbestos specialist Silverdell is back trading as normal after part of the company was rescued from administration.

The Kitsons Environmental Europe division has been sold by administrators to Silverdell subsidiary EDS for up to £8m.

The deal will see no redundancies as all employees and contracts are transferred and Kitsons will operate as a separate division of EDS.

An internal reorganisation also means Kitsons now includes the business previously contained within another Group subsidiary, Silverdell (UK) Limited.

For the financial period ending 30 September 2012 these two subsidiaries reported revenue of approximately £51.2m in aggregate and pre-tax profit of £2m.

The restructuring means Silverdell is back trading as normal following a turbulent few weeks.

Administrators from Zolfo Cooper were called-in at Kitsons earlier this month following the suspension of trading in Silverdell shares on the Stock Exchange.

The administration was prompted by a winding-up order after creditors were believed to have been owed £5m by Kitsons.

The Zolfo Cooper team have been working on a turnaround plan which has resulted in the EDS deal.

One Silverdell source told the Enquirer: “It’s been a really tough few weeks but hopefully things can get back to normal now.

“But some serious questions need to be asked about why this happened and how the management make sure it never happens again.”

The group is now in talks with HSBC over refinancing with a bid to lift the suspension of its shares on AIM.

 

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