Founded 44 years ago in 1980, the company recently appointed Kroll Advisory as its administrator on December 22nd.
Operating from three centres in the county, the company holds a standard international license allowing the operation of 70 Heavy Goods Vehicles (HGVs) and 140 trailers.
Originally trading under the name Neil Bomford Haulage, the company underwent a transformation in 2019 when it was acquired by Howell Gordon and subsequently rebranded as Bomfords Group. Howell Gordon, the acquiring entity, also entered administration on the same day as Bomfords Group.
According to the latest available financial data, the haulage firm experienced an 8.5% decline in turnover to £13.3 million for the year ending December 31, 2021. Additionally, the company reported a pre-tax loss of £618,000.
The business attributed these financial challenges to the ongoing driver shortage, resulting in 10-20% of its fleet being inactive during certain periods, directly impacting revenue. Operating costs, coupled with a reliance on expensive agency labour, further contributed to the erosion of profit margins. As Covid-related lockdowns eased, Bomfords Group faced unexpectedly high delivery volumes, exacerbating its financial struggles.
In a business review, the company stated, “Under the terms of the business’s pallet network agreement, some of these deliveries ended up being at the cost of the business, which further eroded margin.”
As of the time of this press release, neither Kroll Advisory nor the haulage company have provided comments on the situation.