Michael J Lonsdale, one of the UK’s largest M&E contractors, has appointed administrators.
The company, which has offices in London and Langley, Berkshire, was founded in 1986 and turned over more than £2.9bn in almost 40 years of trading, working on major project such as the 51-storey 8 Bishopsgate tower and the Paddington Cube in London.
It turned over £191m in the 12 months to 30 September 2022, making a £2.5m profit – down slightly from £2.7m a year previously. At the time independent auditors for the company said they could see nothing which cast significant doubt on the company’s solvency.
However, on Monday (2 October) the company collapsed, appointing insolvency practitioners from Begbies Traynor to sell-off the company’s assets in a bid to recoup money for creditors.
Michael J Lonsdale’s approximately 240 staff were told in an email from the company’s management, which asked them to return company IT equipment. Administrators are expected to make most of the company’s staff redundant.
Michael J Lonsdale was the 77th largest UK construction company, according to the CN100 2023, and the seventh largest M&E contractor according to the CN Specialists Index 2022. It operated in sectors including pharmaceuticals, commercial offices, fit-out, education, hotels and leisure, rail and data centres.
In financial results for the year to 30 September 2022, published in July, the group said: “The post-Covid economy has brought its own challenges with over inflation resulting from an increase in utility prices and the war in Ukraine.
“Michael J Lonsldale has approached these economic conditions by adapting internal approaches to ensure they are robust and aimed at protecting the margin on jobs and working closely with the supply chain to adhere to project programme”.
The group was working on ongoing projects including the University College London Queen Square Institute of Neurology, which is due to be completed in July 2024.
Begbies Traynor was approached for comment.