Fri, 29 Oct 2021 | ADMINISTRATION
Blackpool-headquartered Create Construction has entered administration amid rising construction industry costs and the impact of COVID-19. The company, which was part of the Create Group and specialised in student accommodation, hotel and private rental projects, has appointed RSM Restructuring Advisory to act as administrator. Other companies in the Create Group are not affected.
The company had been experiencing rapid growth in recent years, with turnover growing from £33 million in 2017 to £92 million in 2020. In its most recent accounts, Create Construction reported post-tax profits of £483,177, with net assets valued at £2.42 million.
Joint administrator Chris Ratten said that RSM were working to reassign the company’s live projects, with the hope of transferring many of its onsite roles to other companies. The firm’s live projects include the construction of an Ibis hotel at Edinburgh airport, a new-build Hampton by Hilton hotel in Trafford, Greater Manchester and an extension to the chain's hotel in Blackpool, Lancashire.
Regarding the problems faced by the company, Chris Ratten said: “Create Construction Limited has recently encountered a number of issues that have led to significant cashflow pressures. The business has been adversely impacted by increasing costs of building supplies and subcontract labour.”
In a statement, Create Construction CEO Paul Mathison said: “The pandemic has severely affected both our clients and our supply chain’s ability to meet their contractual arrangements. An overrun in projects in both time and budget, a number of supply chain failures and delays to a secured pipeline of projects, has ultimately made the company unviable.”
Read more about pressures impacting the UK construction sector
View the latest distressed UK businesses here.
A well-established company which is highly rated within its operating area. The company has long standing customers that provide re-occurring revenue. Services include breakdown repairs and gas safety inspections.
LEASEHOLD
An opportunity has arisen to acquire a company that produces wet wipe sachets and multipack wipes, as well as a range of liquid and cream-filled sachets for clients throughout the UK and internationally.
LEASEHOLD
A reputable electrical and building maintenance contractor, delivering a comprehensive, turnkey solution to prominent organisations across the UK. Has established itself at the forefront of multiple key sectors, including social housing, facilitates...
LEASEHOLD
|
27
|
|
Sep
|
Yorkshire countryside hotel on the market after entering administration | COMMERCIAL PROPERTY
A Yorkshire country house hotel has been put up for sale aft...
|
26
|
|
Sep
|
£1m-turnover Derry garden centre on the market for £1.25m | BUSINESS SALE
A £1 million-turnover garden centre in Derry has been ...
|
23
|
|
Sep
|
E-commerce software firm acquired at 11.5x EBITDA | BUSINESS SALE
Grafenia Plc, a listed business that operates a buy-and-buil...
Sign up to receive our acquisition alert emails to get your FREE guide
|
27
|
|
Sep
|
Yorkshire countryside hotel on the market after entering administration | COMMERCIAL PROPERTY
A Yorkshire country house hotel has been put up for sale aft...
|
26
|
|
Sep
|
£1m-turnover Derry garden centre on the market for £1.25m | BUSINESS SALE
A £1 million-turnover garden centre in Derry has been ...
|
23
|
|
Sep
|
E-commerce software firm acquired at 11.5x EBITDA | BUSINESS SALE
Grafenia Plc, a listed business that operates a buy-and-buil...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources