Surrey-based contractor Blenheim House has entered administration after 28 years in business.
Adam Stephens and Kevin Ley from Evelyn Partners took over as joint administrators last Thursday (18 July), according to the official public insolvency record. The firm owed £13.4m to trade creditors and employed about 80 employees in April 2023.
The contractor had struggled with the impact of Covid and the war in Ukraine, reporting its first ever loss in February. It filed for administration a week after being served a winding-up petition by dry-lining and fit-out subcontractor Radius Construction.
In a statement last week, the board of directors wrote that “an unprecedented catalogue of problems” had “depleted [its] once healthy balance sheet”.
They wrote: “Every effort has been made to try to secure the future of the business, but recent circumstances have made this untenable.”
Blenheim House specialised in refurbishment and fit-out projects in London and the South East.
Ongoing projects included 25 Moorgate, a 6,700 square metre office development near the Bank of England, and a mixed-use scheme on the site of a former sweet factory in Haringey, north London.
It recently worked on schemes in some of London’s wealthiest areas, including Marylebone and St James’s.
Although turnover increased from £67.8m to £86.5m in the year ending 30 April 2023, the firm made a pre-tax loss of £137,000.
Bleinheim House blamed the loss on costs and delays resulting from some of its subcontractors going out of business.
Director Michael Curtis wrote in the firm’s final set of accounts that its lower-than-forecast turnover was “generally a consequence of fewer good opportunities in our sector and an increase in competition”.
Despite the gloomy outlook, Curtis wrote that the firm had recently gained clients and was hoping to win more work after expanding into new sectors. He forecast a similar turnover and low profit margins for the year ending April 2024.
Blenheim House and Evelyn Partners were contacted for comment.
Source : ConstructionNews