Top 10 stories of 2015: 1 Construction group enters administration
SOUTHDALE HOMES, the Halifax-based construction group, has called in administrators.
The group, which has its North West division in Warrington and a North East division based in Newton Aycliffe, had employed 215 people and had been targeting ambitious growth.
However the firm had “severe” cash flow problems due to a number of loss-making contracts which led to the appointment of administrators Peter Holder, Lee Causer and Anne O’Keefe from AlixPartners. 87 employees were made redundant with immediate effect.
A recorded phone message confirmed the appointment of adminstrators and directed suppliers and customers to a generic company email address.
Although its most recent published accounts, for the year to June 2013, showed a turnover of £32.9m, it had forecast it would see that figure doubled in 2014 while its website boasts that it will break £100m turnover for the first time in the current financial year.
Only last month it was celebrating securing £10.5m of new contracts in Yorkshire, to build 100 homes in Sheffield and Bradford.
Speaking at the time, Yorkshire managing director Stuart Allison said: “This work represents part of a strong start to 2015 for Southdale in Yorkshire and is something upon which we are looking to build over the coming months.”
However the trading company, Southdale Ltd, had struggled previously, recording a pre-tax loss of £1.23m in 2013, which followed a £645,000 loss a year earlier. This had seen its reserves dwindle to £2.31m.
Its holding company, Southdale Holdings, had seen some boardroom changes in the last few weeks, with founder John O’Hara and director Trudie McCormick leaving.
