The UK's biggest private car park operator, which runs around 300 car parks nationwide and employs 700 people, is at risk of collapse. NCP filed a notice of Intention to appoint administrators for its UK business on Monday, meaning that administration is likely the next step.
The company has been owned by Japanese global parking operator Park24 and the Development Bank of Japan since 2017, following a sale by Macquarie European Infrastructure Fund. And it's not the first time NCP has had its ownership changed, which has been reflected in how its has been run.
The Japanese parking operator runs more than 19,000 sites across eight countries. Though it has announced that it is filing for administration due to a "decline in demand" and a "tightened cash-flow position".
In a notice published on its website, it states: "From 2020 onwards, however, NCP experienced a decline in demand due to the impact of the COVID‑19 pandemic, and the subsequent recovery in utilisation remained subdued.
In addition, operating costs continued to increase due to elevated energy prices following the situation in Ukraine and persistently high inflation in the UK, leading to rising inflation‑linked rent payment obligations.
The company went on to explain that NCP purchased new car park developments to drive revenue growth while implementing cost-reduction measures.
Despite the company's efforts, it still experienced losses, and with other factors, including the surge in rent costs, NCP bosses had no choice but to place the business into administration.
It added: "In light of these circumstances, and after considering various financing options including potential asset disposals, NCP determined that no prospect of improvement in its cash‑flow position could be identified.
"Accordingly, with the aim of protecting creditors’ economic interests through the preservation of the value of the business and its assets, NCP’s Board of Directors resolved to place NCP into Administration, an insolvency procedure under the laws of England and Wales.
"PARK24 will continue to cooperate in good faith regarding the orderly conduct of the Administration."
