End of the road for Quick Reach

Powered-access firm Quick Reach has entered administration after efforts to agree a restructuring deal with its bank failed.

Administrators Michael Magnay and Gemma Quinn from Alvarez and Marsal have been appointed by the firm, which for the past five years has been relying on asset finance facilities provided by its bank.

The company’s most recent accounts, for the year ending 31 July 2023, showed that it recorded a pre-tax loss of £306,000, following a profit of £483,000 the year before. It attributed the loss mainly to “exceptionally high” interest costs and difficult trading conditions.

Since then, the business has suffered a number of setbacks, including a major fire at its West Bromwich depot at the start of this year.

At the time that Quick Reach’s latest accounts were filed, its directors said in their accompanying report that they were confident of being able to turn things round.

“However, as a result of the recent performance, following the year-end the company was in breach of covenants on its main asset finance facility,” they said.

“The directors maintain a strong relationship with the bank who have indicated a formal waiver will be provided for the breach and a relaxation of covenant testing will be put in place during 2024.”

Quick Reach’s independent auditor confirmed that a “material uncertainty” existed, which brought into question the firm’s ability to survive.

“Following the breach of a covenant in April 2024, discussions have been ongoing to restructure the facilities with the bank, including a waiver of the breach with revised terms issued,” it said.

“The waiver and revised covenant testing position has not yet been formally agreed by the bank and therefore the facility is currently repayable on demand and the future covenant position and the company’s ability to meet these cannot be guaranteed.

“These events or conditions […] indicate that a material uncertainty exists that may cast doubt on the company’s ability to continue as a going concern.”

Quick Reach was set up in 2014 by brothers John and David Barton, and expanded to branches in Manchester, Teesside, West Bromwich and North Lanarkshire.

The firm specialised in the hire of lifts, booms and telehandlers, as well as equipment sales, maintenance and safety training.