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Wed November 20 2019

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Lakesmere in administration

3 Nov 17 One of Britain’s biggest building envelope specialists has confirmed that it has collapsed into administration.

The National Graphene Institute in Manchester was a Lakesmere job
The National Graphene Institute in Manchester was a Lakesmere job

Richard Hawes and Nicholas Edwards of Deloitte LLP were appointed joint administrators of Graceful Holdings Limited, Lakesmere Group Limited and Lakesmere Limited on 2nd November 2017.

The affairs, business and assets of the companies, which have around 900 employees, are now being managed by the joint administrators.

Since incorporation in 1993, Lakesmere’s turnover has increased by an average of 19% a year. Its most recently filed accounts, for the year to 31st January 2016, showed that turnover reached £118.5m, up 24% on the previous year. Pre-tax profit was £3.5m, up from £2.4m.

Recent prestige projects include Canary Wharf Crossrail station in London and the National Graphene Institute in Manchester.

Lakesmere was founded by Mark Davey, who remains chairman as well as CEO of the international division. Lakesmere International is established in Abu Dhabi, Oman, Saudi Arabia and Hong Kong, with a manufacturing operation in China. In 2015 it won a Queen’s Award for Enterprise in recognition of its exports growth.

In 2012 Lakesmere bought out Northern Ireland-based McMullen Facades, one of its biggest competitors, within hours of it having fallen into administration. This acquisition, adding specialist glazing capability and a plant in Portadown, helped fuel recent strong growth.

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In December 2015 the business was bought out by six members of the management team, led by finance director Mark Johnson. Ted McMullen, managing director McMullen Facades, subsequently became chief executive of the Lakesmere Group.

Mr Johnson resigned as finance director on 16th October 2017.

A year ago there was no sign of impending trouble. Announcing its annual financial results, with 45% profits growth, Ted McMullen said business was flourishing.

Growth of the business was attributed to demand for the company’s in-house manufacturing capabilities and off-site construction solutions. “This has led to significant investment and expansion of the McMullen Facades’ factory into new larger premises in Northern Ireland and the establishment of a new manufacturing facility in China to support Lakesmere’s successful growth in Hong Kong and the wider Southeast Asia markets.  In the UK, work in the high-rise residential market as well as contracts across the commercial, education and transport infrastructure sectors have helped fuel growth,” the company said at the time.

Enquiries in relation to the administration, including creditor and supplier enquiries, are being directed to Jessica Hough on 0121 695 5723 or email jehough@deloitte.co.uk.

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MPU

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