Bolton contractor facing financial crisis

A Bolton contractor is bidding to secure its future after it stopped work on several developments in Merseyside and Greater Manchester.

Forrest said it is undertaking a financial restructuring, blaming “a series of incorrect pre-construction estimates” on some of its projects.

It denied claims that it was about to enter administration.

Among the high-profile projects it is working on are three schemes in Liverpool, a care home in Knowsley, and a residential development in Salford.

Developers at all the projects say they are confident they can complete the work if Forrest is unable to do so.

The schemes include Plaza 1821 at Princes Dock, for Peel, as part of the Liverpool Waters development. It involves 105 apartments as in the £21m project.

The £100m Aura scheme near the Royal Liverpool Hospital for the Elliot group includes 1,000 student beds and 142 homes. The developer is also using Forrest on a £70m scheme in Salford.

Forrest is also working on a residential scheme for Iliad near Liverpoll’s Chinatown, and a £12.4m 90-home scheme for Village Housing Association in Knowsley.

Elliot Group owner Elliot Lawless said: “We have a Plan B and we’re satisfied that it is robust.

“There are lots of great people at Forrest and it’s a shame to hear about the company’s problems, but we are ready should the worst come to the worst.

“We’ve delivered more than 3,000 units for our clients in recent years without any issues and nobody should underestimate my determination to get the right result for my funders.

“I and my professional advisors have had our sleeves rolled up and have a team ready to go if need be.”

A spokesperson for Iliad said their scheme would be completed, adding: “We are waiting to see what Forrest do. We hope that they return to site and get on with the job.”

Nigel Sedman, group director of homes at Village Housing Association parent, ForViva, said: “We are aware of the difficulties being faced currently by Forrest Construction.

“We are putting robust plans in place to ensure that the extra care scheme at Stockbridge Village remains on track.”

Peel declined to comment.

Keith Reid, chief financial officer at Forrest, said: “We have been working with FRP Advisory (a restructuring specialist) in an advisory capacity over the past few weeks to explore options for the business.

“Our main priority is to find a solution that works best for our customers, employees and suppliers, and we are doing all that we can to secure the long-term future of the business.

“We have faced a number of challenges across our construction division.

“The projects started prior to the March 2017 refinance have experienced significant time and cost overruns due to liquidity and operational challenges prior to refinance.

“In recent months, it has also emerged that there have been a series of incorrect pre-construction estimates on certain new construction projects.

“We recognise the uncertainty of the position is extremely difficult for our customers, employees and suppliers and we appreciate their continued support. We will provide a further update in due course.”

The last filed accounts for Forrest’s holding company, Ensco 996, for the year to March 2017, show the firm has a turnover of £82m and employed 443 people.

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