Suffering high levels of competition, Axis Fleet Management has ceased trading with insolvency experts at FRP being appointed to the company on the 10th May.
After Axis Fleet Management’s last set of accounts for the year ending 31st March 2018 revealed a £4.3m pre-tax loss on a £25.2m turnover, it’s clear to see that the company has been struggling for quite some time after “a very challenging year”.
Comments have been sourced stating: “The key drivers of the loss were low asset utilisation during the first half of the year and high operational costs as a result of the increasing average age of the fleet.”
“The rental market is suffering from very high levels of competition. There are very low rates and the residual values market and the used vehicle market in combination has proven to be very high risk in terms of end of contract values of equipment.” A former non-executive director at the firm was quoted.
“Challenging trading conditions resulted in cashflow difficulties and despite efforts to find a buyer for the business, a sale couldn’t be achieved.” Mentioned a statement from the administrator.
Due to this, the directors at Axis Fleet Management had no choice but to put the company into administration. This resulted in 20 employees being made redundant after trading was ceased with immediate effect.
A statement added: “The joint administrators are working with the redundancy payments service to provide support for affected employees at this difficult time.”
“The team is also working closely with the company’s funders and customers in dealing with the hire fleets and is seeking to realise the assets of the business to secure the best outcome for creditors.”