Patton falls into administration

Grant Prior 5 years ago
Share

Northern Ireland based contractor Patton is in administration

The firm has offices in London and Milton Keynes and works on projects across the UK.

The business will continue to trade while administrator Tom Keenan of Keenan CF explores all possible options for the future, including sale of all or parts of the company.

The firm, which has traded for around 100 years, has a total turnover of £140m and employs around 320 staff.

Neil Patton, Chairman of the business, said: “This is a very sad day for everyone connected to this family business and the communities we have served for the last 100 years.

“The Directors have looked at every possible option to avoid administration, but it became inevitable because of the general downturn in the building sector, pressure on margins and the resultant impact on cashflow.

“Unfortunately, the company has suffered from the widespread downturn impacting the construction industry and, as a result, has experienced a decline in trading performance.

“The financial position facing the business was such that administration was the last remaining option available to the Directors.”

News of Patton’s troubles came as latest figures from the Insolvency Service showed a sharp drop in construction failures.

But experts warned that falling workloads mean the pace of failures could pick up again.

Mark Wilson, Restructuring and Recovery Partner at Baker Tilly said: “Surprisingly, administrations in the construction industry for Q3 2012 are down a thumping 24% on the previous quarter.

“These numbers fly in the face of the Office of National Statistics numbers released last month, which revealed that construction output for the three months to August 2012 was 11.6% lower than the corresponding quarter in 2011.

“Forecasts for growth in the sector are not strong, with a generally held view that growth has stalled until 2014.

“Whilst the insolvency figures should be welcome news, there must be a concern that they are lagging behind the trends being currently experienced in the industry.

“We still consider this sector to be one that will continue to experience pressure over forthcoming months.”

Latest news

Hong Kong investor buys stalled £77m Manchester scheme site

Far East Consortium plans major residential scheme Angelgate site
9 hours ago

Heathrow calls for fresh ideas on airport expansion

Businesses or individuals are being called to pitch in ideas for third runway expansion
17 hours ago

Retentions Bill second reading pushed back to June

Construction (Retention Deposit Schemes) Bill reschedule
15 hours ago

BAM wins Bristol engineering building

Enabling works later this summer at the University of the West of England's Frenchay campus
18 hours ago

Midlands builder Stepnell expands south

New offices opened in Southampton and Poole
15 hours ago

Egis takes on M40 upkeep role from Carillion

French giant saves 95 jobs at crashed contractor
2 days ago

Robertson bolsters north west arm with O’Rourke hires

Peter Grieve joins as north west operations director
2 days ago

Shareholders revolt over Persimmon pay

AGM vote sees £75m bonus deal for chief executive agreed but 48% of investors vote against
21 hours ago

Competition fear over Tarmac Breedon concrete plants swap

Competition watchdog raises concern about ready-mixed supplies in South Wales and Lancashire
21 hours ago

Scottish quarry surfing lake approved

£10m project to create Scotland's first artifical surf park gets go-ahead
22 hours ago

Science Museum seeks builder for vast storage building

Firm to be picked in October for 300,000 sq ft warehouse near Swindon
2 days ago

Boost your online presence – join the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
2 weeks ago

Insurers slam fire test regime for building materials

"More realistic" lab tests demanded for cladding systems post Grenfell
2 days ago

£80m twin hotel plan for Manchester Airport

Ibis and Holiday Inn kick-start new £180m Airport City hotel district
2 days ago

Worker in plunge removing fall arrest bags from school site

Court hears edge protection was not up to industry safety standards
2 days ago

Mace to start £120m Crossrail office scheme

PLP Architecture reveals latest images of Farringdon scheme
2 days ago

Green light for Liverpool Monarchs Quay scheme

Next phase of King's Dock mixed-use scheme approved
2 days ago

Accident rates hit record lows for NASC scaffolders

Contractors representing 16,000 scaffolding operatives continue to reduce accidents
2 days ago

First packages awarded on £28m Milton Keynes office job

Galliford Try gets going on eight-storey complex
3 days ago

Network Rail to build £46m Wigan train depot

Preparation works are getting underway for Ince-in-Makerfield depot
3 days ago

Specialist trade bodies petition No 10 for payment reform

Unprecedented coalition of trade associations urge Prime Minister to act
3 days ago

Construction boss and developer jailed for contracts bribery

Skansen Interiors MD and and DTZ project manager sentenced
3 days ago

Murphy wins Wessex Water Trym Tunnel relief sewer

North Bristol tunnel scheme to start next year
3 days ago

Graphene concrete game-changer for industry

Exeter Uni scientists produce concrete with twice the strength and four times water resistance
3 days ago

Kier lands lead role in £19.4m Glasgow theatre revamp

Work to start in September revamping the Citizens Theatre
3 days ago

Hill boasts record year as partnerships margin hits 3%

Partnership housing drives growth at Hill as pre-tax profit hits £47m
3 days ago

CMS wins £10m glazing deal on BAM’s Atlantic Square job

Major package win on £100m scheme
4 days ago

Contractors fold before £2m site death fines

Judge hands out huge fines but firms are no longer in business
4 days ago

Green light for £350m Leeds South Bank scheme

Preparation works can now start with construction planned to start next year
4 days ago

Mace go-ahead for London £150m Hanover Square scheme

Great Portland Estates JV secures pre-let to start building work on Mayfair scheme
4 days ago

Contractor services