Perth-based surveying firm Asphar Survey Group has appointed administrators to one of its key subsidiaries, with difficult trading conditions forcing the company to restructure its operations.
Perth-based surveying firm Asphar Survey Group has appointed administrators to one of its key subsidiaries, with difficult trading conditions forcing the company to restructure its operations.
PPB Advisory partners Simon Theobald and Melissa Humann were last week appointed as joint administrators of Asphar Survey Pty Ltd, a labour hire business which provides staff under contract to Asphar Survey Group.
The business has about 50 staff across Australia and also obtains goods and services from suppliers for Asphar Survey Group.
Managing director Anthony Asphar said in a statement that the directors of Asphar Survey Group were preparing a deed of company arrangement proposal to present to creditors of Asphar Survey Pty Ltd.
Asphar Survey Group is meanwhile making offers of employment to all staff and including the full adoption of their outstanding employee entitlements as part of the proposed DOCA.
The DOCA will also adopt the amounts owed to the majority of Asphar Survey Pty Ltd's suppliers, according to Mr Asphar.
Asphar Survey Group is continuing to trade as normal.
Mr Asphar said that the company had experienced difficult trading conditions over the past 12 months, including a number of project delays.
"Over the last 12 months we have sought to retain our workforce so that we can continue to provide excellent service to our customers and we are now in a position to take advantage of excellent growth prospects," he said.
"This strategy has resulted in the necessity to restructure part of the group's operations to consolidate and streamline the business."
Asphar Survey Pty Ltd is continuing to trade under administration ahead of a first creditors meeting next week.
Mr Theobald said the business appeared to have suffered a decline in revenue during a period last year but said it was too early to be conclusive.
“The group is continuing to trade for the time being while we make an assessment of its financial position and restructuring options,” he told Business News.
“We are starting to discuss some restructuring plans but it’s still very early days.”
Avior Consulting is advising Asphar on its restructuring plan.
Asphar Survey Group is Western Australia's second-largest surveying firm with 120 staff and 75 qualified surveyors in WA, according to Business News' Book of Lists.
