Elliott Thomas heading for administration

Parts of the Elliott Thomas Group are set to be placed into administration putting hundreds of jobs at risk.

The Enquirer understands the group has been hit by a cash-flow crisis following a payment dispute on a south London apartment and hotel job.

An administrator is set to be confirmed imminently at Elliott Thomas Logistics and Prime Construction.

But group companies Taylor’s Hoists and Rainsford Contracts have been taken over in a joint venture between the existing management and Lyndon Scaffolding which will save the jobs of 90 staff.

The entire group had around 420 staff and self employed workers on its books.

Site staff were first made aware of problems on Monday morning when they were sent home from projects across London.

The cash-flow crisis centred on Prime Construction which was established back in 2012.

The Enquirer understands the firm became involved in a payment dispute with its client at the £11.9m Bear Gardens project in London’s Bankside.

The 75-bed apart-hotel scheme was 37-weeks late which led to claims of around £2.5m.

The dispute went to adjudication but bankers for Elliott Thomas pulled the firm’s overdraft facility while discussions were still ongoing.

The client on the Bear Gardens job was a Guernsey-based property developer and RISE was the project manager.

One contractor said: “This has come as a bit of a surprise and hit a lot of London jobs.

“Elliott Thomas are one of the biggest names in logistics and a lot of sites rely on them.”

Latest accounts show the group made a pre-tax profit of £148,000 on a turnover of £54 m for the year to March 2015.

A deal to save Taylor’s Hoists and Rainsfords Contracts was struck on the eve of the rest of the group’s imminent administration.

Birmingham based Lyndon is the UK’s largest specialist scaffolding contractor employing 500 staff with a turnover of £45m.

from Construction Enquirer http://www.constructionenquirer.com/2016/10/27/elliott-thomas-heading-for-administration/

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