Tue, 11 Apr 2023 | ADMINISTRATION
Lane End Developments Construction Ltd, a developing contractor based in Warrington, has fallen into administration. The company had previously stated, over a month ago, that it intended to enter administration as a “protective measure”.
In February, construction director Mick Cunningham said the company would appoint administrators while performing due diligence on a restructuring of the business and commented that the company had new investors in the final stages of talks.
Cunningham added that a restructuring process would be finalised by early March, and added: “Upon conclusion, this investment will secure the future of our employees and sub-contractor partners and will allow Lane End to continue to grow and develop.”
The firm has now appointed Frank Ofonagoro and Jeremy Woodside of Quantuma Advisory as joint administrators. Ofonagoro and Woodside are seeking to assess the restructuring options available to the company.
A company update read: “The Joint Administrators are currently working alongside potential funders and senior management to assess the options available to them to restructure the Company and allow it to continue to operate.”
“We are very conscious that the wages and salaries due to be paid on 31 March 2023 remain unpaid. With it being so early in the process, we are unable to provide details of a timetable for events, however, we shall endeavour to provide updates in a timely manner, as and when appropriate.”
“As soon as we have more certainty on funding, we shall then be able to provide more certainty around dates.”
The company was a leading developing contractor for the North West construction and housing sectors, building more than 1,100 homes across the region, according to its website.
In its most recent accounts, for the year to May 31 2022, it reported turnover of £81 million, up from £78.2 million a year earlier. However, its operating profits fell from £411,0204 in 2021 to £255,298 in 2022. At the time, the company’s fixed assets were valued at just over £1 million and current assets at around £20.8 million, with net assets amounting to £1.3 million.
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