Hall Construction Group Limited (00458044): administration
- Status
- Administration ended
- Administration began
- 2017-01-13
- Administrators' firm
- Begbies Traynor
- Formerly
- F.Hall & Sons,Limited
- Incorporated
- 1948-08-20
- Location
- Leeds
- Industry
- 41201 Construction of commercial buildings
Why it went into administration
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Management failings / irregularities
- Competition / price pressure
From the administrators' statement
Hall Constructon Group Limited was incorporated in 1948 and began tracing in Hull, constructing commercial buildings and civil engineering projects The Company traded successfully and profitably for many years and continued to be owned and operated by the same family since incorporation
In early 2015, a decision was taken to seek to increase the tumover and profitability of the Company on the back of an expected increase in public and private sector spending within the construction industry Due to the retirement of the commercial director in March 2015, changes were planned at board level and new directors were appointed with the incumbent managing director becoming executive chairman after a short handover period.
In January 2015, two fixed price design and build contracts were won by the Company in Doncaster and York respectively These contracts were significantly larger than previous contracts completed by the Company and it became apparent in December 2015 that the profitability of the project in Doncaster was overstated, resulting in a potential loss on the contract At the same tme, the contract in York was forecast by the new management team and the Company was losing money on this contract which severely impacted the short term cash flow requirements of the business Upon identification of the extent of the costings, the senior members of the board retumed to the Company in an attempt to resolve these issues and sought to call upon their expertise and standing within the construction sector
Administrators' statement of proposals (2017-03-22) · Companies House register