Baldwins faces an uncertain future

Baldwins, crane hire specialist, reported a pre-tax loss of £14.4m for the year ending 31 March (against a £5.8m profit in 2001). The company said: "There is some uncertainty over the group's ability to continue in its present form."

Its gearing ratio has risen to 333%, thereby breaching borrowing covenants, and while it is negotiating with its creditors, the statement said the outcome "can be unpredictable."

However, UK managing director Rick Barnett said capital-hungry operations like plant hire often have even higher gearing at times. He said negotiations with the banks could include debt for equity deals, as well as rescheduling debts, and should be concluded in the next two to three weeks.

Baldwins' UK operations made an operating profit before exceptions, interest and profit from sales on fixed assets of £5.8m (£10.5m in 2001) on a turnover largely unchanged at £60.9m. Barnett said over the past year the UK fleet has been reduced and some non-performing depots have been sold, but in general he was happy with the UK's performance.

Four depots in the US have been closed and the report states that the American performance "remains unacceptable and the long-term future of the business remains under review".