Auto Windscreens enters administration

Despite it being Valentine’s day, there was no love lost between Auto Windscreens and the HMRC on 14 February 2011. That’s the day the UK's second largest windscreen repair company went into administration, threatening 1,100 jobs, apparently owing money to the good old Inland Revenue.

It was a sad day for the windscreen firm as the £63 million a year turnover company was in the middle of implementing a major operational improvement plan, changing the business model with the intention of delivering “significant operational efficiencies.” According to Deloitte, the main aspects of the restructuring plan had been put in place. However, delays in implementation of the IT systems, coupled with lower than anticipated revenues in the final quarter of 2010, had led to cash flow pressures. The Guardian reported that “the large creditor” was HM Revenue & Customs (HMRC).

Accounts for the year to the end of December 2009 showed pre-tax losses of £5 million, an improvement on 2008’s pre-tax loss of £18.6 million. However sales were below the firm’s best – it recorded revenues of £99 million in 2008 and £77 million in 2009.

The Guardian pointed out that business’s fate similar to that of the British School of Motoring. Both were owned by Aviva, then sold to German firm Arques Industries. Arques sold both to its former executives, and both have now gone into administration. The AA bought BSM out of administration, leading to talk that it might make a bid for Auto Windscreens. There has been no confirmation of this.

Joint administrator Matt Cowlishaw commented: “It is extremely disappointing to see such a well-known business enter administration. The company worked extremely hard to try and recapitalise the business, but unfortunately this could not be achieved in the time available. We are now in urgent discussions with the key stakeholders and interested parties in an attempt to save the business. We have provided the employees with full briefings and have set up a dedicated employee hotline to help them understand their position.”

Auto Windscreens serves major motor insurers, fleet businesses and private individuals. The company operates a network of 68 fitting centres across the UK, 550 mobile units, a distribution centre in Aston, Birmingham and a central call centre. The company is headquartered in Chesterfield.

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