Thu, 05 Aug 2021 | ADMINISTRATION
A Nottinghamshire construction company specialising in assisted living facilities for vulnerable people has fallen into administration. The collapse of Minster Building Company comes as a confluence of factors impact the UK construction sector, with a string of high-profile administrations in recent weeks.
The past month has seen Kapex Construction, Cleveland Bridge and WRW Construction fall into administration.
Minster's joint administrators Louise Freestone and Mark Ranson of Opus Restructuring and Insolvency Partners, who were appointed on July 19, said that the business had succumbed to the effects of Covid-19, as well as the “acute difficulties” facing the construction industry.
According to the Mansfield-based company’s most recent accounts, for the year ending December 31 2019, its total assets less liabilities were valued at around £1.15 million. Reports indicate that, at the time of its collapse, the firm owed around £1.2 million to trade suppliers, £170,000 to HMRC and had an estimated £140,000 in employee claims.
The company experienced pandemic-related delays to the planning and construction phases of numerous projects. This situation was then exacerbated by significant price increases on building materials, resulting in the firm’s projects becoming loss-making. Work at all sites subsequently stopped and the company will cease trading due to the losses incurred on its contracts.
Joint administrator Louise Freestone said: “It’s a great shame that a long-established construction business has been laid low by the knock-on effects of the coronavirus crisis. Not only have jobs been lost and suppliers left nursing substantial losses, but the vulnerable people who would have been housed in the properties being built by the company will suffer as a result of the inevitable delays in completing these projects.
“The UK construction sector is facing acute difficulties as a result of the pandemic and the severe disruption it has caused to its operational processes, supply chains and labour resources. Sadly, Minster will not be the last failure in this vital industry.”
View the latest distressed UK businesses here.
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