More than 200 companies owed money by Henley Construct will receive nothing, it has been revealed.
The south London-based contractor, which had a turnover of more than £40m five years ago, entered administration in April. Construction news had previously revealed that the company had put most of its staff on unpaid leave, citing issues including Brexit, Covid and rising costs.
A report published this week by administrators 360 Insolvency revealed it had received claims totaling £6.69m from 221 suppliers, trade creditors and subcontractors.
They said they would not be able to raise money through the process to pay unsecured creditors.
Henley made 35 of its staff redundant ahead of the appointment of 360. These staff and HMRC will receive payments, although the tax body will only receive 3.89p for every £1 owed. The report said administrators were “aware” of his claim for £360,068 but had yet to receive formal proof.
Taxpayers will also be hit by £33,927 in relation to a recovery loan Henley took out during the pandemic. These loans were part of business support schemes provided by the government that were designed to save businesses from collapsing due to the impact of the lockdown.
CN revealed earlier this year that at least a quarter of companies that entered administration or judgment between April 2020 and December 2022 had taken out some form of Covid support loan. Some 46,000 construction companies were or were in arrears of their recovery loans at the end of January.
In its latest published accounts, for the year ending 31 December 2021, Henley Construct’s turnover was £22.9m and it made a pre-tax profit of £335,000. The previous year, it made a pre-tax loss of £1.45m on revenue of just £13.2m. It had a turnover of more than £40.8m in 2018.
At the time the company folded, the home-focused contractor had three live contracts remaining. Work at all three sites was halted earlier this year. However, a company controlled by a relative of the directors has proposed to buy them, according to the directors’ report.
The sale would only be valuable to enable retention payments on the works, which are “mostly very advanced” and based on tight margins, he added.
The administrators also revealed that a company called Reach Joinery Ltd, owned by Henley Construct and supplying it with manufactured goods, has ceased trading and is expected to be liquidated shortly.
Another Henley-owned company, Quad Scaffolding Ltd, is insolvent on the balance sheet and its financial situation is being investigated by administrators, the report said.
Structural steel supplier Intelligent Steel Solutions, which shared directors with its largest shareholder, Henley Construct, went into liquidation in April owes trade and expenses creditors £1.47m. The goodwill of Intelligent Steel Solutions Ltd was bought by Intelligent Steel Ltd, with which it shares the same directors. Keep trading.
