Tue, 26 Nov 2013 | ADMINISTRATION
Civil engineering contractor J Hughes Construction entered administration on 20 November after cash flow difficulties.
The Middlesbrough-based business operated throughout Yorkshire and the North East of England, and did most of its work for housebuilder firms including Persimmon, Keepmoat, Redrow and Strata.
Baker Tilly has stepped in to organise matters for J Hughes and to pass its contracts on to other companies. There are rumours that newly formed Applebridge Construction, based in Stockton-on-Tees, is among the parties interested in taking on jobs and some of the staff.
Established 20 years ago by John Hughes, the business was sold to his cousin Donal, via a management buy-out deal in the spring of 2011.
Under the new ownership, more care was taken over the invoicing at the company, and successfully reduced its bad debts as a result.
The tide turned when Top Service, a credit reference agency, started to receive reports of non-payment in July from about 25 of J Hughes’ customers.
“Our customers noticed slowing payment terms earlier this year and due to an increase in reports of non payment, we took to decision to remove the credit limit and sent our customers an early warning notification some weeks ago,” a spokeswoman for Top Service told the Construction Enquirer.
It recorded sales of £27.9 million for the period starting 1 May 2011 to 31 October 2012, with pre-tax profits of £18,281. Its revenues had increased from £23.5 million, for the year ending 30 April 2011.
____________________________________________________________________________
Related information:
Businesses in administration
Read more about buying a business
An exciting opportunity to acquire the business and assets of a well established tech-enabled product and service business that assists employers in preventing workplace incidents, specifically but not limited to oil and gas, manufacturing and emerg...
This is an opportunity to acquire a highly specialised AI-enhanced medical-writing business. The business has developed an AI-powered platform designed specifically for medical writers to reduce operational tasks and manual perusal of data. The...
Project Richmond provides complete, software-led warehouse management solutions and projects that aim to automate various processes, ultimately improving clients’ operational accuracy and efficiency and reducing expenditure.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.