Cheshire construction business placed in administration

Work had stopped on the Hilton Garden Inn site in Hanley

Sarah O’Toole and Jason Bell of Grant Thornton have today been appointed joint administrators to eight entities within the Pochin’s group of companies.

Based in Middlewich and founded in the 1930s, the family-owned property and construction business employs 120 people and has been involved in a number of high-profile construction projects in the North West.

In the past year the construction business, with a new management team on board, had established a platform for growth, developed excellent client relationships and secured a pipeline of profitable new work and opportunities.

However, despite that renewed optimism for the future, the legacy issues from earlier contracts became too great a burden leading to difficult trading conditions.

The group’s board explored a number of options in an effort to preserve the group’s trading status over recent months, including injections of significant levels of capital from shareholders and the sale of the group’s property portfolio.

Despite these efforts, the impact of the challenges have proven insurmountable and the difficult decision was reached by the directors to place a number of entities in the group into administration.

This includes the main trading entities of Pochin’s Ltd, Pochin Construction Ltd and six other subsidiaries.

Sarah O’Toole said: “Whilst it is very early days, this may result in a number of redundancies and the companies ceasing to trade. The joint administrators will continue to review options to ensure the best possible outcome for creditors.”

Trade publication Construction Enquirer reported this morning that subcontractors had been turned away from sites today.

It said it had been contacted by specialist subcontractors who said sites have been locked up in Chester.

It reported that security guards were also turning away subcontractors from the Pochin’s Hilton Hotel site in Stoke, which was topped out only two weeks ago.

Calls to the firm’s Middlewich headquarters this morning were unanswered.

The firm was originally founded in the 1930s.

Today it is involved in a range of major developments across the North West.

These include a new 190,000 sq ft development at Cheshire industrial park MA6NITUDE.

The industrial and distribution accommodation was brought forward by DBS Pochin, the joint venture partnership between db symmetry and Pochin’s.

The scheme, which received planning approval from Cheshire East Council earlier last year, comprises two single occupancy units on an area demarked Plot 1A.

In May this year Pochin’s topped out on a new 33,000 sq ft unit for international manufacturer and distributor of commercial refrigeration Staycold.

The facility, at Hawarden Business Park in Flintshire, had been designed to bring all of Staycold’s functions under one roof.

It includes 27,000 sq ft of warehouse space and 6,000 sq ft of office space.

Bob Nicholson, property director at Pochin’s, said at the time: “The new HQ promises to deliver improved efficiencies for the business in a prime location at the heart of the Deeside Enterprise Zone. We look forward to handing over the facility to Staycold in the near future.”

In January 2018 Pochin’s extended its relationship with industrial developer Chancerygate, announcing a £3.3m contract to deliver a new warehouse facility at Eaton Point, Chorley.

The 50,000 sq ft scheme has planning permission for 13 units aimed at the thriving SME sector in Lancashire. The range of units on offer start from 3,300 sq ft.

The project was the second time Pochin’s had been brought on board by Chancerygate, with the North West specialist already on site delivering a 57,000 sq ft distribution centre for renowned international parcel delivery company, DPD.

For the year to February 28, 2018, Pochin’s reported turnover of £59.2m compared with £68.4m the prior period. It also slipped from a pre-tax profit of £4.98m to a pre-tax loss of £3.43m, which it blamed on the poor performance of a single residential construction contract which had been completed.

In notes accompanying the figures to Companies House, it said “substantial justifiable claims are being made”.

Chief executive Jim Nicholson said the company had “solid foundations for the future” in February this year.

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