Construction News

Sun July 03 2022

Related Information

Cheshire house-builder falls into administration

15 Feb Mulbury Homes Limited, a social housing developer based Cheshire, has gone into administration, citing bad debt.

Andrew Knowles and Steve Clancy of Kroll were appointed joint administrators of Mulbury Homes today, 15th February 2022.

On appointment, they have ceased to trade the business as a going concern and made all staff redundant.

Mulbury Homes, founded by Greg Mulligan and Martin Bury, began trading in 2010. It specialises in the procurement and delivery of affordable housing for registered providers.

It currently has more than 1,000 homes under construction, according to its website. Its most recent accounts show that in the year to 31st March 2020, the company turned over £38m and made a pre-tax profit of £12m.

Headquartered in Lymm, the developer employs approximately 40 staff and had recently been struggling with trading and cash flow issues brought on by the pandemic, planning delays and rising costs, the administrators said.

Joint administrator Andrew Knowles said: “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.

“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."

The Mulbury directors 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 northwest 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.”

Got a story? Email news@theconstructionindex.co.uk

MPU

Click here to view more construction news »