Mon, 10 Jul 2023 | ADMINISTRATION
Nottingham-headquartered contractor J Tomlinson has fallen into administration after failing to secure financing for future investment. The group has named Raj Mittal and Nathan Jones of FRP Advisory as joint administrators.
Raj Mittal commented: “Despite its scale and the success achieved across a number of its divisions, the severe impact of COVID and recent inflationary pressures meant that J. Tomlinson was not in a financial position to continue trading and so we have had to make the difficult decision to cease operations.”
Mittal added that the joint administrators were now “assessing options on next steps and have started our engagement with clients and creditors regarding ongoing projects and liabilities.” The majority of the firm’s approximately 400 staff have been made redundant upon the appointment of the joint administrators.
J Tomlinson was founded in 1950 as an electrical contracting firm and has since expanded across numerous markets. The group is a major UK contractor, operating through a network of regional offices in Sheffield, Derby, Wigan, Beeston, Sutton Coldfield, Doncaster, Kirkby-in-Ashfield and Wakefield.
In its accounts for the year ending September 30 2021, the group reported turnover of £106.2 million, up from £94.7 million. Despite its improved performance following the initial disruption of the COVID-19 pandemic, the company still fell to a £657,000 pre-tax loss.
At the time, the company’s fixed assets were valued at £2.9 million and current assets at £38.2 million. At that point, the company’s net assets amounted to £5.6 million.
J Tomlinson’s Chief Executive Mark Davis said that, since the COVID-19 pandemic, the company had worked “tremendously hard to build the JTL brand across our chosen sectors with great success”. However, the group’s position has been exacerbated by inflation, ultimately leading to its collapse.
Mark Davis commented: "JTL has a number of divisions across facilities management, regeneration, refurbishment, engineering services and care. It is the latter division which has been battling long term contracts with hyperinflation, schemes priced pre-COVID which ultimately has impaired the group's cash-flow.”
"We as a board have worked tirelessly to attract additional overall finance into the group to invest for the future. Sadly today, we have to announce we have been unsuccessful in this regard.”
Read more about the high levels of distress impacting the UK's construction industry.
A highly successful business operating for over a decade. Offers a comprehensive range of external composite and PVCu doors to homeowners across the UK. Primarily operates on an e-commerce basis, utilising multiple trading platforms. Benefits from si...
Forward-thinking roofing and cladding business specialising in the new build and refurbishment sector of the construction market, as well as specialising in flat roofing. The business operates with clients nationwide. Our client has an established re...
Very well-established business which primarily conducts a prompt, reliable and highly efficient Haulage business within the construction industry in the Hailsham area. It has been under the proud ownership of our client since 2014. It is now being of...
AVRS Systems, a specialist mechanical, electrical, instrumen...
Financial services firm Begbies Traynor has acquired Bristol...
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
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.