BGF-backed Hawk Group enters into administration

The development comes three years after BGF invested £8m in the company and sees an initial 83 of the company's 420 headcount made redundant.

In a statement, EY said the group has been affected by "historical problematic contracts", in addition to a delay in its pipeline of projects.

According to its 2017 financial results, Hawk was forced to make "a minimal write-off of balances" owed by Carillion Group at the time of its liquidation in January 2018. The results also stated that Carillion's liquidation meant Hawk experienced "timing disruption as contracts previously awarded" had to be rescheduled.

Previous funding
BGF invested £8m in Hawk in 2015 in order to expand its fleet and diversify into new sectors, including quarrying. At the time of the investment, the GP said demand for the company's services had increased due to a pipeline of major infrastructure projects and an increase in UK housebuilding.

Company
Founded in 1974 and headquartered in Prees, Shropshire, Hawk is a rental provider of construction machinery and equipment. The business generated a turnover of £93.5m in 2017, according to the aforementioned results.

People
Hawk Group – Mike Hawkins (CEO); Bill Bolsover (non-executive chairperson).

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• BGF (Business Growth Fund)
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