Construction News

Sat October 19 2019

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Royal Liverpool hospital subbie shuts its doors

19 Sep Twenty months after the collapse of Carillion, the impact is still being felt down the supply chain

Royal Liverpool University Hospital under construction
Royal Liverpool University Hospital under construction

A Carillion subcontractor on the Royal Liverpool University Hospital has been forced to cease trading.

Antrim-based Blackbourne was established in 1958 as Blackbourne Electrical Company Ltd by Cedric Blackbourne, who is still the boss today at the age of 81, running it with his family.

But after 61 years in business, the family-run mechanical & electrical subcontractor ran into financial difficulties.

The Belfast Telegraph reports that the company has entered into a company voluntary arrangement (CVA) to pay off its debts, with all 86 staff being made redundant. It has appointed business advisers Baker Tilly Mooney Moore to advise on the CVA process.

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In the year to 31st March 2018 Blackbourne made a pre-tax loss of £3.9m on revenue of £24.7m. The loss was attributed to ‘three major construction contractors’ – one of which is believed to have been Carillion.

Carillion awarded Blackbourne the contract to deliver mechanical services to four floors of the new Royal Liverpool University Hospital that it failed to build before going bust in January 2018.

Blackbourne regional director Bryan Campbell said at the time:  “What a wonderfully challenging project and client to be involved with.”

                                                                                      

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