Construction firm Lyjon calls in administrators
Fri, 22 Nov 2024 | ADMINISTRATION
Cheshire-based contractor Lyjon Group has appointed administrators after a tough trading period.
Administrators from Opus Restructuring were brought in earlier this month and appointed on November 14, according to filings on Companies House.
Founded in May, 1964, the Lyjon Group is based in Telford Road, Ellesmere Port. Its website says it delivers projects ranging in value from £10,000 to £1.5m. It operates four divisions - construction, electricals, insulation and cladding.
In the past it has carried out work for local authorities including Wirral, Cheshire West, Chester, Knowsley and Liverpool. Other clients have included Knowsley Housing Trust (Livv Housing Group), Tate & Lyle and United Utilities.
In its most recent results filed to Companies House, the business in the year to September 30 2023 recorded a turnover of £7.9 million, down from £8.1 million in the previous year. Its loss before taxation widened to £1.1 million from nearly £122,000 the previous year.
The group, with an average of 49 staff during the financial year, had net assets of £1 million, down from £1.9 million the previous year.
Creditor amounts falling due within one year were up to £2.4 million from £1.86 million. Of that amount £1.8 million was owed to trade creditors.
In the latest accounts the group stated that it was looking to increase its market share by ‘continuously developing long lasting partnership arrangements’.
The construction sector in the UK however has been hit badly in recent years battered by higher material prices, supply chain disruption, higher interest rates and skill shortages.
The industry accounted for 12 per cent of UK administrations in 2023 – the second highest sector – and up 22 per cent on 2022, according to analysis from law firm Shakespeare Martineau.
However, there are hopes of a recovery in the sector given the new Labour Government’s plans to ramp up house building and infrastructure projects.
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