Assets to be marketed following collapse of Midlands construction firm
Thu, 25 Jan 2024 | ADMINISTRATION
Enrok Construction Limited, a construction firm based in the Midlands, has fallen into administration. The family-run company has operations in the West and East Midlands and specialises in the design, build and project management of commercial and residential developments.
The administration comes as construction firms across the UK face serious ongoing challenges. Over recent months, the Stafford-headquartered company has been impacted by the insolvency of a key supplier and delays to contracts which intensified its existing cash flow pressures.
As a result, the firm is no longer able to trade. Upon the appointment of Tim Bateson and Ryan Grant of Interpath Advisory as joint administrators on January 23, seven of the company’s 80 employees were immediately made redundant.
The administrators will now focus on realising the company’s assets. Tim Bateson commented: "The building and construction sector continues to face a number of headwinds, including persistent cost inflation and material shortages which have had the effect of eroding the thin margins that are so often seen in competitive fixed price contracts.”
"Our intention is to assist the employees that have unfortunately been made redundant whilst we seek to realise the assets of the company, including exploring any interest in the company's live contracts."
Enrok, which traded as ATD Homes until rebranding in 2020, has offices in Dunstan, Stafford and Ednaston, Derbyshire. Initially, the company primarily focused on its own developments and contracting for residential developers. Since the rebrand, it had increasingly repositioned itself as more of a general construction contractor, undertaking work beyond the Midlands and, in 2022, expanded to its new head office in Stafford.
In the company’s accounts for the year to May 31 2022, its total assets were valued at around £570,000, with net assets amounting to £105,482.
The construction sector is being hit harder than any other industry by rising corporate insolvencies - Find out more in this in-depth analysis of the challenges facing UK businesses
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