Perfect economic storm pushes more building firms into administration

Specialist pub refurbishment firm goes bust

After 20 years in business Sanderston Contracts Limited in Castleford has gone into administration placing its 34 employees in jeopardy.

Holly Gittins of the Wakefield Express reported the cause was due to “economic uncertainty and a decline in spending.”

She reported: “Established in 1999, Sanderson Contracts is based in Castleford, but delivers projects across the UK and ROI, specialising in the development, fitting and refurbishment of pubs and restaurants, as well as hotel development and news build projects."

Managing Director Ian Sanderson, who founded the company, said: “The Board of Directors are devastated to be ceasing to trade after 20 years in business. In that time, we have developed long standing relationships with our customers and suppliers. The appointed Administrator will be working to support affected employees and would be pleased to hear from any parties expressing interest in the company’s business. All enquiries may be addressed to Kingsbridge Corporate Solutions on 01482 337500 or by email at”

Ian Sanderson said in the Wakefield Express: “The Board of Directors are devastated to be ceasing to trade after 20 years in business. In that time, we have developed long standing relationships with our customers and suppliers. Like many in the construction sector, we have experienced very difficult trading conditions as projects have been cancelled or delayed in the current economic climate and issues on a number of large-scale developer led projects have negatively impacted the company.

“As soon as we became aware that income was not materialising as quickly as we had anticipated, we sought to take prompt action to minimise losses to our supply chain and customers. It is regrettable that job losses are anticipated as we have grown and invested in our workforce over the last 20 years and employ highly skilled people. The Board remain committed to working with the Administrators to maximise asset recoveries and are hopeful that a return can be made to creditors in due course.”

Following the demise of Carillion a number of firms have found it tough going with some hitting the rocks. Last year the UK construction sector shrank with some of the worst months for the industry since the Credit Crunch in 2008. With Brexit about to happen, a new Government with an overall majority in place and the promise of trade deals in the offing 2020 looks much better as some certainty returns. However, this may be wishful thinking if economic uncertainty continues if trade deal negotiations drag on and difficulties arise over future relationships with the EU.

Last October the construction purchasing managers’ index (PMI) (a gauge of the economic health of the sector) – scored the industry at 44.2 when any mark below 50 month on month is bad suggesting a recession in the business. The info was gathered by IHS Markit and the Chartered Institute of Procurement & Supply.

Clearly the fall-out from Carillion has not helped nor the political uncertainty over the last three years, or the economic downturn on the Continent and the global trade wars between the USA and China. A wet winter doesn’t help either or the delays to the Cross Rail and HS2 the uncertainty over the expansion of Heathrow Airport and the decline in the High Street with the building and refitting that is associated with retailers. All of these factors have conspired to put pressure on an industry already struggling. In the case of Sanderston Contracts there’s the added problem of pubs and restaurants closing rather than opening meaning there’s a spike in liquidations.

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