High profile Somerset construction firm calls in the administrators

A Somerset construction firm which employs more than 120 people has gone into administration.

GWKS, which also operates as GWorks, has appointed administrators from EY Parthenon’s Turnaround and Restructuring Team.

According the last accounts filed with Companies House the Bridgwater firm,  which specialises in groundworks, had a turnover of £27m and made a profit of £432,000 last year.

Lucy Winterborne and Daniel Christopher Hurd, partners of EY Parthenon’s Turnaround and Restructuring team, were appointed as Joint Administrators on June 13th.

The appointment was made by the company’s directors and the joint administrators have given the required written notice to all known creditors of the company.

According to its latest set of accounts the firm was coping with the current tough trading conditions.

GWKS is well-known across the South West and has worked on several major schemes for high profile firms including Amazona and GKN.

A statement from the last set of accounts painted a positive picture for the business in the face of tough trading conditions.

The statement from the directors said: “After managing to maintain a stable trading activity throughout the Covid pandemic we emerged in a market with growing demand that presented many opportunities for new work.

“Our reputation in the South West as a reliable and experienced groundworks and civil engineering contractor has and continues to generate much repeat work with large main contractors.

“The directors adopted a steady and cautious approach throughout the year when considering projects at the tendering stage ensuring the type of project would match our key strengths and experience.

“The significant inflationary effecting both labour and material costs were,  and remain a constant concern in our tendering process and ongoing management of project costs against budget.

“We do not see the current pressure on costs and the difficult economic climate changing in the short term but the directors remain confident that with our robust cost management and controls we can maintain  our profit margins going forward.

“Our group cashflows have been managed  well and we are fortunate to have well established trading relationships with our many suppliers, subcontractors and agencies with whom we have a mutual understanding and respect of cashflow demands and the economic pressures we are all facing.”