John Laing Partnership placed in administration due to cashflow problems

John Laing Partnership has entered administration and insolvency practitioners from PricewaterhouseCoopers have been drafted in to examine options for the community housing company.

Based in Hertfordshire, John Laing Partnership was the social housing unit of John Laing Group before it became a separate entity following an MBO in 2002.

Three other related businesses were also taken into administration at the time – John Laing Group-owned Intro Homes (Stevenage); Impala Partnership Limited and JLP Homes Limited, both owned by John Laing Partnership.

Of the total 51 staff, 41 are to lose their jobs, while the retained ten employees are to help the administrators proceed with the administration procedure. The insolvency experts are currently working to determine the best options for the businesses.

Commenting on the situation, joint administrator Zeif Hussain said that the group had suffered financial problems “due to a number of factors including the deterioration in the housing market, delayed recovery of customer retentions and a lack of significant new contracts.”

It is understood that John Laing Partnership has existing contracts with Paragon Community Housing Group, L&Q and Network Housing Group.

For the year to 30 June 2009, John Laing Partnership Limited reported revenues of £92.9 million, up from £67.7 million for the year to 31 December 2007.

Intro Homes (Stevenage), which buys and sells real estate, had sales of £5.49 million for the year to 31 December 2008, which was the last time it recorded any financial figures.

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