Blenheim House, a prominent contractor based in Surrey, has entered administration after nearly three decades of operation.
- Joint administrators Adam Stephens and Kevin Ley from Evelyn Partners were appointed following financial challenges, including £13.4 million owed to trade creditors and the impact of external economic factors.
- The firm had been experiencing financial difficulties exacerbated by the COVID-19 pandemic and the ongoing war in Ukraine, eventually filing for administration after a winding-up petition.
- Despite a rise in turnover to £86.5 million, the contractor reported a pre-tax loss due to rising costs and subcontractor issues.
- Director Michael Curtis expressed hope for the company’s future, despite a challenging market and increased competition.
Blenheim House, a notable contractor in the construction industry, has officially entered administration, signalling the end of 28 years in business. The joint administrators, Adam Stephens and Kevin Ley from Evelyn Partners, assumed their roles last Thursday, as per the official insolvency record. This move follows significant financial challenges faced by the firm, including liabilities of £13.4 million owed to trade creditors and a workforce comprising approximately 80 individuals as of April 2023.
The onset of the COVID-19 pandemic, coupled with the economic implications of the war in Ukraine, severely impacted Blenheim House. These circumstances led to the reporting of its first-ever loss in February, setting off a sequence of events resulting in a winding-up petition filed by Radius Construction, a dry-lining and fit-out subcontractor, and ultimately leading to a decision to file for administration.
The directors of Blenheim House issued a statement citing an “unprecedented catalogue of problems” that had “depleted [its] once healthy balance sheet.” They indicated that despite exhaustive efforts to secure the business’s future, prevailing circumstances rendered their efforts unsustainable.
Specialising in refurbishment and fit-out projects, Blenheim House had undertaken several notable endeavours, including the 6,700 square metre office project at 25 Moorgate, close to the Bank of England, and a mixed-use development on a former sweet factory site in Haringey, north London. Recent projects in affluent London areas such as Marylebone and St James’s underscored the firm’s significant market presence.
In the fiscal year ending 30 April 2023, Blenheim House saw a turnover increase from £67.8 million to £86.5 million. However, this growth was overshadowed by a pre-tax loss of £137,000, attributed to increased costs and delays primarily due to subcontractor failures.
Michael Curtis, the director, noted in the company’s final accounts that lower-than-expected turnover was “generally a consequence of fewer good opportunities in our sector and an increase in competition.” Despite this, Curtis was cautiously optimistic, highlighting recent client acquisitions and the company’s expansion into new sectors as positive developments. The firm was optimistic about maintaining a similar turnover and low profit margins through the following year.
The closure of Blenheim House highlights the acute challenges faced by construction firms in a volatile economic climate.
