HyperTunnel, a British tech company aiming to innovate tunnelling, has entered administration.
- The company had developed a unique tunnelling method involving 3D printing and horizontal directional drilling.
- Despite interest and investment, financial difficulties have led to its collapse.
- Efforts to restructure its £12m loan with Thai investor Hamersley were unsuccessful.
- Administrators are actively seeking buyers for the business, with future updates anticipated.
HyperTunnel Limited, renowned for its ambitious aspiration to transform the tunnelling industry, has capitulated, entering administration due to insurmountable financial obligations. Despite garnering significant interest and investment over the past three years, the Basingstoke-based company’s financial predicament has jeopardised its revolutionary vision for the sector. The technique developed by HyperTunnel involves employing horizontal directional drilling (HDD) alongside artificial intelligence and advanced 3D printing technology, potentially facilitating quicker, safer, and more cost-effective tunnel construction, repair, enlargement, and monitoring.
The company’s proposition, demonstrated at the 2021 British Tunnelling Society conference, involved deploying small robotic units to deliver construction chemicals through HDD bore pipes, thereby 3D printing tunnels underground. Such technological prowess attracted the attention of significant entities, leading to various collaborations. Amongst these was a research and development contract with Network Rail, following the appointment of Mark Carne, former Network Rail chief, as chairman. The firm also obtained financial backing from the French construction behemoth Vinci and secured a significant grant for a demonstration initiative at the Global Centre of Rail Excellence in Wales earlier this year.
However, financial troubles were compounded by a £12 million loan, accompanied by additional interest nearing £2.8 million, maturing at month-end to Thai investor Hamersley. Despite engagement with Gordon Brothers to obtain investment, facilitate a sale, or restructure the debt, the attempts were unfruitful. Consequently, administrators from Opus LLP have been installed to assume control over its operations, with joint administrator Paul Davis elucidating that the impending debt settlement significantly impairs HyperTunnel’s attractiveness to potential investors.
Given that approximately £14.8 million is poised to exit the company by the end of July, the administrators continue seeking a purchaser for the enterprise. The workforce, presently comprising 37 employees, remains intact, albeit informed of potential redundancies contingent on the company’s journey towards financial rehabilitation. Further updates regarding their professional fate are awaited, heightening uncertainty during this transitional period.
HyperTunnel’s visionary approach to tunnelling is now challenged by fiscal realities, yet efforts to salvage its innovations persist.
