Cheshire-based contractor Lyjon Group has appointed administrators after posting a big pre-tax loss.
The firm recorded a £7.9m turnover in its most recent published accounts, for the year to 30 September 2023 – down 3 per cent on the previous accounting period.
A pre-tax plunge into the red of £89,535 in the year to 30 September 2022 escalated to an £888,664 loss in the most recent published figures.
Administrators from Opus Restructuring were brought in this month (5 November), according to The Gazette, which records official appointments.
Lyjon’s website says it had four divisions focusing on construction, electricals, insulation and cladding.
It worked for clients including Knowsley Housing Trust (now Livv Housing Group), Cheshire Council, Tate & Lyle, United Utilities, Shotton Paper and Georgia-Pacific.
The group had more than £2.4m falling due to creditors within a year of 30 September 2023. About three-quarters of this sum was owed to trade creditors.
Founded in 1964, Lyjon is based in Telford Road, Ellesmere Port. Its website says it worked on projects ranging in value from £10,000 to £1.5m.
Lyjon Group was approached for comment.
According to Creditsafe, 28 construction companies fell into administration in October.
Rob Driscoll, director of legal and business at the Electrical Contractors’ Association (ECA), said earlier this month that the construction sector’s business model remained “highly fragile”.
And Paul Reidy, commercial banking director at financial services firm Arbuthnot Latham, has warned that higher national insurance contributions for employers, announced by the government in the Autumn Budget, are “likely to increase financial strains” on small firms in the building sector.
