A family-owned building contractor has gone into administration due to problems caused by the pandemic.
Leicestershire-based J A Ball officially ceased trading a few days ago, with the loss of 18 jobs.
The Coalville contractor, which worked in the public and private sector, was founded in 1992 and specialised in refurbishments, extension work, and commercial projects – including building churches and schools. Over the years it had built several hundred homes and dozens of apartments.
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A recent diversification into commercial contracts had led it to embrace new construction techniques, provided training for staff and had seen investment in major plant and equipment.
The business was also a past backer of the Team Leicester delegation to the MIPIM property and construction conference in Cannes.
Most recent accounts for J A Ball Ltd, for the year to January 31, 2019, showed a turnover of £35.9 million compared to £27.9 million a year earlier.
It had pre-tax profits of £655,000.
A statement from business recovery and insolvency experts Smith Cooper said restrictions caused by Covid-19 had led to missed completion dates, hampering the company’s ability to meet its financial obligations and continue trading.
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It said that, together with a contract that resulted in a substantial cost overrun, had cut short the business’s available working capital.
Insolvency practitioner Michael Roome, who was appointed to lead the administration process, said: “Many companies have been facing existential pressures in recent months, fuelled by the Covid-19 crisis, which is evident with J A Ball Ltd.
“Fortunately, by seeking prompt advice from ourselves, we’re able to enhance the options available to the company and directors, facilitating a novation of a key contract to a well-funded and highly respected local company with the resources and ability to fulfil it, mitigating the liabilities arising upon insolvency and optimising the recoveries.
“At this point in time, our priority is to preserve value and ensure the best outcome for all stakeholders.
“In delivering the appropriate strategy we have been able to work alongside the directors and minimise disruption in respect of certain ongoing projects following our appointment.
“We will continue to assist the employees that have been made redundant during what is already a distressing time in the midst of the Covid-19 crisis.
“We’re working alongside the directors to support those members of staff, communicating clearly about what options are available and how they might be able to move forward.”
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Recent projects for J A Ball included the construction of a £1 million loft-style residential development in Birmingham’s business district.
That saw six apartments built in an existing industrial building – between Birmingham’s business district and Jewellery Quarter.
The business was also involved in a 10-month project to convert part of an office block into 46 apartments overlooking St Margaret’s Bus Station, in Abbey Street, Leicester.