Ex-SP Holding workers sink £2.5 million into new drainage firm

Mainstream Distribution, which is run by former contractors who were among those owed money by the administration-hit business, has already started trading from the ground floor of Reconomy's former home in Stafford Park 7, Telford.

It has rescued the jobs of around 22 members of staff who worked for SP Holding, and bosses are at pains to say there is no direct connection with the prior company.

SP Holding fell into administration in May, months after founder Steve Holding was jailed for encouraging drivers to falsify their mileages.

Former contractors Robert Ayers and Paul Diggins have now launched the new business, alongside investor and fellow director Ian Taft.

They hope to build turnover up to about £5 million in the first year, and continue to grow.

"We are not greedy and expecting miracles," Mr Ayers said.

"What we want to do is get a good foothold and by Christmas to have a very happy little company going that's doing exactly what it says on the tin."

He added: "I think it could be a very good starting point for a diverse and dynamic company.

"The people we have got are quite happy, and all ready to rock and roll."

The company has not directly acquired any items from SP Holding, but has negotiated its own arrangements with businesses affected by the administration, taking on new leases on vehicles and looking for work from customers who have been left in the lurch by its collapse.

Mr Ayers and Mr Diggins say they had attempted to bring together the SP Holding management team, but found they could not go ahead with a management buyout.

Instead, they approached Mr Taft to put together a finance package for a new business, and that is currently taking shape.

As well as operating from Stafford Park 7, with about 165 vehicles in its lease hire arm, and a drainage operation, it has another at Wednesbury in the Black Country.

Its drainage services operation has a fleet of tankers across Shropshire and the West Midlands.

Ultimately, the company could also encompass a car sales arm.

Mr Diggins added: "There is no connection with the previous business other than we have employed some of the staff.

"We knew the staff that came over could do the job.

"We haven't bought anything from administration, or any assets.

"We have looked at companies that had some liability, and came to make our own arrangements."

SP Holding Tractor Hire Limited, SP Holding Services Limited, SP Holding Workshop Limited, SP Holding Limited and SP Holding Group Limited all collapsed into administration last month.

The group, which operated from Upper Coalmoor, Horsehay, Telford, was set up in 1985 by Stephen Holding and over the years developed into a major utility and industrial support business.

SP Holding had won multi-million pound contracts with Severn Trent Water and a firm which supplied VIP boxes for high-profile sporting events such as the British Grand Prix at Silverstone and the Isle of Man TT race.

The businessman was jailed for eight months at Shrewsbury Crown Court in January after he "aided and abetted" his drivers to falsify records of their hours of work and rest periods.

Holding, 48, of Moreton Coppice in Telford, had pleaded guilty to a series of offences at a previous court hearing and appeared at court yesterday to be sentenced.

As the owner and director of SP Holding Services Ltd Holding – who was a former Company of the Year award winner at the Shropshire Business Awards – had also tendered guilty pleas on behalf of the company on two charges relating to the falsified drivers' records.

Holding's ex-wife Tracey Smith, 48, of Wellington Road, Horsehay, Telford, also pleaded guilty to offences as the company secretary in charge of paying drivers.

She was spared jail – and sentenced instead to a 12-month community order to include 100 hours of unpaid work.