A big construction contractor with hundreds of workers is heading into administration, blaming the impact of “hyper-inflation” on long-standing contracts. Mark Davis, chief executive of Nottingham-based J Tomlinson, said they had been unable to bring fresh money into the business and the board had had no option than to start the process of appointing administrators.
The business, based in Lilac Grove, Beeston, employs more than 400 people and is involved in new-build projects as well as improvement works to thousands of houses, bungalows, sheltered care schemes and high-rise apartments across the Midlands, Yorkshire and Northern and Central England. It is also involved in facilities management and repairs and maintenance contracts.
A statement issued on behalf of the J Tomlinson board by a “devastated” Mr Davis said they were working hard to support the workforce through such a difficult time.
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He said: “It is with a heavy heart that I have to announce that J Tomlinson Ltd will be filing a notice of intention to the court today to enter into administration, the proposed administrator will be FRP Advisory, which we anticipate will take place later today.
“JTL have a number of divisions across facilities management, regeneration, refurbishment, engineering services, and care. It is the latter division which has been battling long-term contracts with hyper-inflation, schemes priced pre-Covid which ultimately has impaired the group’s cash-flow.
“We as a board have worked tirelessly to attract additional overall finance into the group to invest for the future. Sadly today, we have to announce we have been unsuccessful in this regard.”
The firm, which was founded in Nottingham in the 1950s, was 134 on the recently published BusinessLive list of the Top 500 Companies in the East Midlands.
Latest accounts to September 30, 2021, showed a turnover of £106.2 million.
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As well as its Nottingham head office, it has a West Midlands base in Sutton Coldfield and offices in Kirkby-in-Ashfield, Wigan, Derby, Sheffield, Doncaster, Wakefield and Bullwell.
In March it announced a scheme to create business studios in a Grade II listed stables block in partnership with Erewash Borough Council, and last November announced a two year contract to deliver Charnwood Borough Council’s housing capital works programme.
It recently completed a new 80-bed luxury residential care home, on behalf of Hamberley Development, in Enfield.
Mr Davis said: “Since Covid impacted the world and the local business community, we have worked tremendously hard to build the JTL brand across our chosen sectors with great success which is testament to all our people.
“We have many very long-service colleagues who have spent a good portion of their lives supporting our business, along with their family and friends, we hoped we would end their journey with a bright future for the next generation, sadly we have run out of time.
“I would like to express my gratitude to the JTL family for their proactive attitude to our customers, to each other and the supply chain who have supported us over a long period of trading and especially post-Covid and the impact this outcome will have on them, and their business and their employees.
“We have employees with 30 years’ time invested and customers lasting 15-20 years which is incredible and tragic.
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“We have done our upmost to communicate timely and provide the support to our teams which is very difficult when decisions of this magnitude are taken and implemented in the tightest of timelines.
“We will do our utmost to provide support and guidance throughout the forthcoming difficult period.”