Historic construction firm in crisis talks with creditors
GROWING pains have hit a York construction and restoration company hard, forcing it to propose a CVA to its creditors.
A series of projects outside William Anelay Ltd’s usual remit proved “financially and operationally difficult” resulting in cash flow problems at the business.
The company, which has been in operation since 1747, making it nearly 270 years old, turns over £38m. It specialises in high profile historic and listed building projects.
Now the company is proposing a company voluntary arrangement (CVA) with creditors to allow it to keep trading. It will agree to creditors a certain percentage of what is owed to stay in business, avoiding administration.
William Anelay is being advised by Newtons Solicitors and RMT. Bankers to the company reportedly support the CVA proposals, which will come into force if creditors representing 75% or more of the debt agree.
The company currently has 190 staff, including subsidiaries Lowery Roofing, Hare & Ransome Joinery, Anelay Traditional Masonry and Anelay Building and Conservation, which are unaffected and will continue to trade as normal.
Chairman and special projects director, Charles Anelay, is the eighth generation of the founding family of the business. It is currently working on site at York Mansion House, Bradford City Hall and Lancaster Castle.
William Anelay said it is usually profitable and that it has a secured workload of £33m and £9m of projects under consideration in the current year. It says it has an additional £12m of work is already secured for 2017-18.
Mr Anelay said: “While only a few projects outside our usual sphere have been involved, the values were significant and this has harmed our business performance and cash flow. They are now finished, save one, where completion is imminent and another, which has been brought under control, but unfortunately we are now unable to pay suppliers.
“We have a fresh approach, have returned to our core operations and have a strong order book for the next 12 months and beyond.
“We appreciate that the need for a CVA will be a great disappointment to subcontractors and suppliers who have supported us for many years but this is the best way to make a maximum and prompt return to creditors and we are totally committed to making it a success. Of course, it can work only if our customers are prepared to support the proposal as well.
“With our bank’s support and a successful completion of the proposed debt restructuring, we aim to continue in our current form and are committed to completing schemes under contract.”
