SH Structures, a North Yorkshire company, has ceased trading, leaving debts exceeding £4.5 million to suppliers and contractors. Documents submitted to Companies House reveal the company’s financial troubles following its entry into receivership in April.

Key Financial Details

Total Debt: Over £4.5 million

Employee Wages Owed: Almost £1 million

Debt to HMRC: Just over £370,000

Trade Creditors and Suppliers: Around 100, collectively owed over £4.5 million

Founded in September 1992 and based at Moore Lane Trading Estate in Sherburn-in-Elmet, SH Structures specialised in designing, manufacturing, and installing complex steel structures. The company employed approximately 70 staff. As it has ceased trading, all employees will be made redundant. 

One of SH Structures’ most significant achievements was the completion of The Kelpies in 2013. These 100-foot-tall, 300-tonne horse head sculptures in Falkirk, Scotland, are a £5 million cultural landmark honoring Scotland’s working horses.

Despite undertaking projects across the UK valued up to £5 million and achieving a turnover of £10 million in 2023, SH Structures faced severe cash flow issues over the past 12 months. The financial difficulties were attributed to several critical factors. This includes significant project deterioration, which included quality and timing issues, client disputes, and reputation damage.

The business also suffered losses and cost overruns on ongoing jobs due to budget overruns, operational inefficiencies, and penalty payments. There was also a drop-off in work for April 2024, driven by market slowdown, increased competition, and strategic missteps. 

Begbies Traynor Group was appointed to find a buyer through an accelerated merger and acquisition process. A Notice of Intent to move into administration was filed to protect the company from creditor actions. Despite initial interest, no offers were made, leading to the company’s administration on April 4. The administrators’ report indicates that some preferential creditors may receive distributions from asset sales, but unsecured creditors are unlikely to receive any compensation.