Administrators confirm closure of 50-year-old construction group

Walsall construction group Shaylor Group has been placed into administration, with 200 staff being made redundant.

Raj Mittal and Tony Barrell, partners at FRP Advisory, confirmed their appointment as joint administrators today.

They said the group had experienced severe cashflow pressures in recent weeks following several project delays and after unsuccessful attempts to raise additional funding, the directors took the decision to place the company into administration.

The joint administrators are now in discussions with the company’s clients regarding the transfer of sites and are supporting those affected by the closure of the business. A small number of employees at the head office in Walsall have been retained to support the administration process.

Raj Mittal, partner at FRP Advisory in Birmingham, said: “Despite the efforts of the directors, the financial issues facing the company were not able to be resolved and resulted in the decision to place the business into administration.

“Our immediate priority is now to support those affected and work closely with the Redundancy Payments Service to ensure that employees receive every support at this difficult time. We will also be working closely with clients to ensure the smooth transfer of sites.”

Yesterday, the company it emailed its staff to inform them the company was being placed into administration. It had already filed a notice of its intention to appoint administrators earlier this month.

It is a dramatic collapse for the £140m-turnover company, which only three months ago filed its annual accounts showing a second-consecutive £6m post-tax profit.

In its annual accounts which were approved by Shaylor’s board on March 21, chief executive Stephen Shaylor was upbeat. He highlighted improved operating margins that were achieved in the year to September 2018 and was looking ahead to a new financial year where it already had 80% of its target forward order book secured.

Shaylor Group is working on a number of projects in Birmingham, including the 15-storey Emporium student tower in Eastside, the DoubleTree by Hilton hotel in the city centre, and the Gilders Yard and Beaufort House residential developments.

Subcontractors that worked on the Silverstone racing circuit visitors centre and Emporium student tower in Birmingham are among those left out of pocket.

 

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