LYMM-based affordable homes property developer Mulbury Homes has gone into administration with the los of around 40 jobs with directors blaming the pandemic, planning delays, cost increases and supply chain issues.
The company had been involved in several affordable homes projects in and around the Warrington area, since its launch in 2010.
Andrew Knowles and Steve Clancy, both of Kroll, have been appointed joint administrators of the company based at Great Oak Farm, Mag Lane, Lymm.
Mr Knowles said in a statement: “The continued difficult trading conditions, rising costs, and financial pressures as a result of bad debt has led to a weakened cashflow position which has led to the appointment of the joint administrators.”
On appointment, the joint administrators ceased to trade the business as a going concern and made the existing staff redundant.
Mr Knowles added: “The joint administrators are continuing with their duties following the sale, realising assets, and distributing funds to creditors as well as investigating the financial affairs of the company as part of their statutory duties.
A statement issued by Mulbury directors Martin Bury and James Mulligan said: “Since we started the business in 2010, Mulbury Homes has worked in partnership with our housing clients to deliver over 2,000 homes across the North West and we are proud of our record.
“We had a strong pipeline of projects and we were hopeful for the future. However, we have not been immune to the very challenging conditions facing the construction sector brought by the pandemic, planning delays, cost increases and supply chain issues.
“We have been working tirelessly to keep the business going but the current conditions left us with no option but to call in administrators.
“We would like to thank our staff, clients, supply chain and partners for their support to Mulbury Homes in the last 12 years.”
The company commenced trading in 2010 and is known for its specialism in the procurement and delivery of affordable housing for registered providers.
In 2011 the company was involved in a £9.5 million affordable homes development involving more than 90 homes on Thelwall Lane, Latchford followed by 78 properties on the former George Howard scrapyard in Folly Lane, completed in 2015. More recently the company completed a development at Partington near Lymm. Mulbury currently has 1,089 homes under construction.
In January last year Mulbury announced with Impact real estate investor Cheyne Capital, a £32m forward funding deal to build 144 apartments in Manchester’s New Cross neighbourhood. The 12-storey development was planned for Oldham Road, offering one-, two- and three-bedroom apartments.
Existing projects include schemes at Euxton in Lancashire, Hazel Grove and Levenshulme in Greater Manchester, and Kew, on Merseyside.
Figures filed for the year to March 31, 2020, showed turnover was static at £38.4m, compared with £38.2m in 2019, while pre-tax profits of £12,045 were less than half the previous year’s level of £27,766.
