Creditor worries as major haulier enters administration

A host of international lessors are facing losses with the
recent entry into administration of lessee haulage company
Macfarlane Transport Holdings.

MAN Financial Services, MAN Rental, EuroTrail, Mercedes-Benz
CharterWay, Schmitz Cargo Bull Finance and Dawsons were all leasing
assets to Macfarlane when it entered administration in recent
weeks. Richard Fleming, of KPMG, who is handling the
administration, said Macfarlane had 400 vehicles on lease.

He added that Macfarlane’s profit margins had come under
“unsustainable pressure”.

The £20 million company’s last set of accounts, to December
2007, showed an increase in turnover by £2.4 million and that a
£364,000 loss in 2006 had been turned into a £225,000 pre-tax
profit – but profit margins still sat at only 1 percent.

Fleming said: “Expert opinion should be sought by commercial
vehicle operators when cash-flow problems are starting to occur. If
tackled early a transport company’s problems – including predatory
attacks by competitors – can perhaps be avoided and the company and
its creditors saved.”

Fleming described the aggregate outstandings as “considerable”.
In the case of Macfarlane’s all leased vehicles were located and
returned to the respective lessors – to face resale in a depressed
market.

The scale of the outstanding leasing commitments can be
estimated when a single two-year old 480bhp Tractor unit retails at
£35,000 and a three-year old Tipping Trailer at £14,000.