Armoury Demolition collapses into administration

Grant Prior 14 years ago

Birmingham based Armoury Demolition and Recycling has called in the administrators threatening 90 job losses.

The Midlands demolition firm is now in the hands of accountants at Harper Cavendish who were sent in by company pension fund trustee Legal & General.

The administrators are currently reviewing the firm’s contracts in progress with a view to completing them in a bid to raise cash for creditors.

Widespread job losses are expected among Armoury’s 90 staff and the administrator was unable to confirm how many employees have been kept on to complete the contracts.

Latest Companies House accounts show the the firm had a turnover of £8.8m for the year to June 2009 – down from £11.4m in 2008.

Armoury made a pre-tax loss of £75,000 in 2009 compared to a £830,00 profit the previous year.

Harper Cavendish said it had “not ruled out the possibility of salvaging the ‘goodwill’ of the core business built up over 22 years.”

The demolition sector has become increasingly competitive in the downturn.

Industry expert Mark Anthony of said: “Armoury was one of the UK’s most-respected demolition contractors, and the fact that it has failed should serve as a warning to the wider demolition industry.

“Demolition workload is down and some of the work that is being let is going at suicidal prices that will undermine the stability of the company winning the work and impact upon the industry as a whole.

“I am afraid to say that Armoury is unlikely to be the last major contractor to fall to the current economic recession.”

The fall of Armoury comes as the number of  construction and property companies calling in the administrators dropped dramatically last year.

Research by Deloitte revealed that 453 companies became insolvent in 2010 – a drop of 34% from 2009 when 683 companies in the sector went into administration

Lee Manning, reorganisation services partner at Deloitte said: “Risk of insolvency plays a big part in the property and construction industry because of its heavy reliance on supply chain relationships.

“Whilst many of the smaller property and construction firms would have been affected in 2008 during the early stages of the downturn, the sector still remains the largest to be hit by the market slow down, accounting for one in five administrations in 2010.”

Latest news

A2Dominion reins in new-build and cuts development team

Housing association to stop private new build sales in big strategy switch
1 day ago

Sellafield partnership appoints final key delivery partners

Altrad and Kaefer bag £180m access, insulation and painting deal
1 day ago

Go-ahead for Milton Keynes’ largest private rental project

Platform_ to build 20-storey scheme of 335 flat next to train station
1 day ago

Health centre canned as build costs double in four years

Devon NHS stands down plans for Health and Wellbeing Centre in Teignmouth
1 day ago

Family confirm death of Des O’Rourke

Deputy chair and co-founder of Laing O'Rourke dies aged 75
2 days ago

Plans approved for major phase of £2.5bn Salford Crescent

Crescent Innovation will help create global research hub
1 day ago

Deal to kick-start 3,000-home Northstowe town centre

Labour Government acts to unlock next phase of new town near Cambridge
2 days ago

Striking new-look for Canary Wharf HSBC tower

Large chunks of upper floorplate to be removed in major overhaul
2 days ago

Kier halves debt to £115m after strong trading year

Order book up 7% to £10.8bn with 85% of work secured for year ahead
2 days ago

Developer blasts “unfair” power charges on huge Liverpool site

Romal Capital unhappy about site power hook-up costs
2 days ago

Regal to start Wembley 1000-bed student scheme

Backer found to deliver £400m twin tower student scheme
2 days ago

Breyer Group bags £163m housing repair deal

Major repair and maintenance win from Kingston Council
2 days ago

VolkerFitzpatrick lands Piccadilly Line upgrade deal

Contractor to work on Cockfosters depot
2 days ago

26 face fight to renew spots on £1bn NEPO civils deal

Next generation framework to start in March 2025
3 days ago

Go-ahead for £170m King’s Cross life sciences office project

Innovative arched design to carry landmark building over railway tunnels
3 days ago

Mitie buys power contractor ESM for £8.5m

Building FM firm strengthens high voltage contracting offer
3 days ago

New vision unveiled for £5bn Liverpool Waters

More housing included in central docks area after Labour £55m funding boost
4 days ago

String of contract wins sees turnover surge 25% at Mace

Construction division sees revenue leap to £1.73bn
3 days ago

Morgan Sindall wins £32m Walsall waste centre

Contract will transform former metal factory site
3 days ago

Kier wins £30m Greenwich teaching block

London South East Colleges plans to spend £47m on Greenwich Campus redevelopment
4 days ago

Blenheim House Construction applies for administration

Surrey contractor employs around 80 staff generating £87m turnover
4 days ago

GMI chief jumps to Henry Boot Construction

Lee Powell will replace Tony Shaw as MD when he leaves at the end of 2024
4 days ago

Avant Homes makes £109m loss

House builder reveals huge loss just days after entering Crest Nicholson bid race
5 days ago

Greggs unveils plans for giant distribution centre

Bakery giant to build 311,551 sq ft logistics centre in Kettering
4 days ago

£330m south east London 1,250 homes scheme approved

Outline planning for New Belvedere development near the Thames
4 days ago

Green light for Birmingham 1,200-bed student scheme

Cambrian Wharf project will rise to 14 and 35 storeys
4 days ago

Welsh fit-out specialist files administration notice

£30m turnover employee-owned Paramount D&B lodges court notice
5 days ago

Skanska signs £105m London Millbank office rebuild

Original 1915 building facade will be dismantled and rebuilt
5 days ago

Historic facade contractor goes into administration

Administrator seeking buyer for Charles Henshaw & Sons
1 week ago

Three-year HS2 station box excavation completed

Enough clay to fill 300 Olympic sized swimming pools removed from Old Oak Common site
5 days ago

Contractor services