North-west partnerships builder lodges intention to appoint administrators

North-west developing contractor Lane End Developments Construction is in talks to bring in new investment and restructure after lodging a notice of intention to appoint administrators.

The £81m turnover Warrington-based building firm, which works with housing associations to deliver affordable homes, said it was in the final stages of securing new investors. 

Company director Mick Cunningham said the firm had lodged an “administration notice” but the business remained “active and viable” while it “explored strategic options to re-structure”.

Cunningham added: “This process is ongoing and new investors are entering the final stages of negotiations and due diligence to secure a successful share purchase.

“The administration notice has been lodged to protect the business as a short-term measure until the completion of the restructure.”

Lane End works with major North-west housing associations including Torus, Weaver Vale Housing, Onward and Trafford Housing Trust.

Cunningham said that the investment would allow employees and those of sub-contractor partners to kept their jobs as well as allow Land End to grow and develop. 

An administration notice is a formal declaration alerting creditors to a company’s intention to appoint administrators. It requires that all creditor action must be halted, providing a breathing space in which a company threatened by creditor action can take positive steps to remedy the situation.

Lane End’s full accounts, published last month, show it had a turnover of £81m in the 12 months to 31 May last year while its pre-tax profit was £245,000. 

The accounts said that the year to the end of May had seen “continued challenges arising from the impact of inflationary growth and the availability of materials”. 

It noted that the company had come through the pandemic and “survived the surge in material and labour price rises”. However the accounts said the pandemic had caused a number of contracts to lengthen, meaning that “a good number of contracts were still in progress [by the end of May last year] and hence causing there to be a depletion in cashflow”.