Fri, 06 Sep 2024 | ADMINISTRATION
Glenevin Limited, a Livingstone-based civil engineering firm that had worked on numerous full-fibre broadband network builds over recent years, has fallen into administration. The company reportedly collapsed after funding for many pipeline contracts was withdrawn due to a deterioration in market conditions.
Founded in 2013, the company was a multi-utility infrastructure development and maintenance firm, operating predominantly in Scotland, but also across the UK. Over recent years, the company had worked on full-fibre broadband networks for UK operators including OpenReach, CityFibre and Voneus.
In accounts for the year ending August 31 2022, the company reported turnover of £38.2 million, up from £18.6 million a year earlier, while nearly doubling its pre-tax profits from £1.07 million to £2.05 million.
However, earlier this year, industry publication ISPreview reported that the company had stopped working on a deployment with Voneus. Gareth Harris and Paul Dounis of RSM UK Restructuring Advisory were subsequently appointed as joint administrators of the company, along with its subsidiary GCL Hire Limited, on August 30 2024.
According to RSM UK, the company had fallen into administration after a “material deterioration in market conditions led to funding being withdrawn for many of the pipeline contracts”, resulting in the business becoming unviable.
Broadband network operators, and the civil engineering firms they work with, are under increasing pressure as a result of rising costs, intensifying competition from rivals and difficulties in raising new investment amid high interest rates.
Despite efforts to secure a buyer for the business, this was not possible, and the company was subsequently closed down, with all employees made redundant.
RSM Partner and joint administrator Gareth Harris said: “This has been a very fast-moving situation but due to market circumstances outside their control, and without a viable solution the Directors have had no choice but to shut the business. Employees have been paid up to the end of the month, but sadly all have been made redundant on appointment.”
In Glenevin’s August 2022 accounts, its non-current assets were valued at around £3.3 million and current assets at approximately £10.4 million, with total equity attributable to the owners amounting to £4.5 million.
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