Lead contractor for £9m Lime Street revamp collapses

After construction engineering company NMCN said it intended to appoint Grant Thornton UK as administrators, Liverpool City Council said it was seeking clarification as to what this would mean for the project.

NMCN was the main contractor for the Lime Street scheme, which will reduce the street to a single carriageway in each direction, increase public space and add a cycle lane. NMCN started work on the site in October 2020 and was supposed to be finished by mid-December. It is unclear how NMCN entering administration will impact the project.

In a statement on the London Stock Exchange, NMCN – formerly North Midland Construction – said it was no longer able to continue trading after failing to refinance. The administration declaration applies only to NMCN and the NMCN Sustainable Solutions subsidiary. Other companies in the Nottingham-based group are unaffected.

NMCN had been attempting to recapitalise the company through a £24m fundraiser with Svella and other investors. It also wanted to renegotiate its facilities with Lloyds Bank. However, the fundraising and refinancing were conditional on finalising an annual report and publishing the company’s audited financial statements.

“Completing the preparation of the group’s accounts has revealed further underlying contractual issues with expected losses rising to £43 million,” NMCN said. “It has now become apparent that the company will be unable to approve the audited financial statements in a timely manner to allow the proposed transaction to complete within the required timeframe. This, in turn, has led to significant liquidity issues for the Group and particularly the Company, which unfortunately is now considered to no longer be able to continue trading as a going concern.”

NMCN did say that it had received offers from others to acquire its trading operations and subsidiaries and that discussions were underway.

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This is really embarrassing. When will Liverpool City Council learn. Too many mistakes. The city has become a joke. Unfortunately it’s the people living in the city who will suffer the most.

By David

What’s going on, this seems to happen a lot in Liverpool?

By Rich X

If LCC Councillors hadn’t wanted to pause and review the Lime St scheme even after it had started the improvements could have been complete before this collapse. Good that the Strand didn’t get caught up in this. The Strand looks really good.

By Anonymous

I have sighed so many times that I am sick of sighing….. sigh.

By The ghost of Michael McDonut

Yet another scheme in Liverpool collapses. I don’t really care about who is to blame, I hope it’s those who are no longer any way near the current set-up in the council, I do care about how long it will take to complete. This is the gateway to the city for many commuters it’s the first impression as they walk out from Lime street and just look at the state of it.

Utter shambles.

By Karl

NMCN going into administration was a bit shocking £400m t/o quoted in the Echo?
But the decision making and antics of the Council have to be described as very poor and the more they prognosticate about everything else, instead of running the City efficiently and for the well being of the citizens we will suffer. We need big changes now before it is to late. Councillors and local MP’s are obsessed with scoring points off each other and national figures than enhancing the prosperity and future of the City. Quite frankly they all need replacing.

By Liverpolitis

I hope the new stadium will be ok

By Meeseeks

The same voices opposing the line street scheme also vigorously opposed the strand development….it will never work . In fact in now is working really well traffic actually flowing better than before the work commenced , it also looks a lot better and is safer …also improved access to the river . It’s not the city’s fault the contractor went bankrupt….stick with the lime street scheme…it will work and look great .

By George

Critics need to read the article and also fact-check the NMCN story on CN etc. Also worth viewing yesterday’s recording of the live development forum 5th Oct with the Mayor which gives an honest and ve refreshing appraisal of schemes both now and in pipeline.

By LEighteen

@Liverpolitis – turnover is vanity, profit is sanity, cash is reality.

NMCN’s recent history has been littered with ‘exceptional’ events that caused them to make losses. A bit like those firms who won’t answer the phones because they are experiencing a ‘high volume’ of calls….every single day….

NMCN’s contracts will be novated to another contractor, I imagine works will recommence soon enough.

By BLS Bob

Like many others from the city i have moved from embarrassment of the utter shambles our city must be viewed from afar to anger. I agree with Liverpoolpolitis about the need for a clear out however we had a great opportunity to cleanse the city of its inept clueless regime yet the same citizens voted them back in ? Rather than select a passionate independent Mayor which would have sent out a message of change the Flat earth society voted labour back in. From that day i honestly stopped caring and decided to focus on events outside of the city. Its really sad to say but the voters deserve the chaos

By Paul M - Woolton

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