Naylor & Walkden enters administration
Standish-based contractor Naylor & Walkden Construction Services has gone into administration, with all 10 staff made redundant, following significant losses on contracts earlier this year.
Jason Elliott and Craig Johns of Cowgill Holloway have been appointed joint administrators.
The balance sheet at 31 August 2014 showed liabilities of £1m and cash in the bank or in hand of £750,000.
Elliott said: “During the first quarter of 2015 the company suffered significant losses on two very large contracts. This had a severe impact on the forecasted short-term cash-flow for the business and as a result the company prepared revised projections to take these losses into account.
“The company had been successful in a large contract which was due to commence in January 2016 and the revised projections showed that the company could survive provided it was successful in winning a number of the tenders that it was awaiting confirmation on.
“Unfortunately in September 2015 the company discovered that none of the tenders had been successful and after reviewing the work in progress it became apparent that the company could not survive beyond the next few weeks and at that time the directors took advice from their accountants to seek professional advice.”
He added: “We are currently working with several of the contractors to agree novations of some of the remaining contracts which if successful will maximise realisations from the debtor ledger and preserve the retention ledger.”
Clients included Royal Exchange Theatre in Manchester, Grand Hotel in Lytham-St-Annes, and Inn on the Square in Keswick.