# Woodmace Limited (01989748)

> Why UK company 01989748 went into administration, from the administrators' statement filed at Companies House, by companydig. Interactive version: https://companydig.co.uk/company/01989748

- **Status:** Administration ended
- **Administration began:** 2022-07-11
- **Administrators:** Jeremy Karr, Andrew Hook, Simon John Killick
- **Administrators' firm:** Begbies Traynor
- **Incorporated:** 1986-02-14
- **Location:** London
- **Industry:** 41201 Construction of commercial buildings

## Why it went into administration

- Creditor pressure / legal action
- Loss-making contracts / project overruns
- Competition / price pressure
- COVID-19
- Rising costs / inflation
- Funding withdrawn / unable to refinance
- Bad debts / customer insolvency
- Credit insurance / supplier credit withdrawn

## From the administrators' statement

Woodmace is an established civil engineering and construction business which conducted its business activities through two associated companies (“the Companies”), Woodmace Limited (“the Company”) which was incorporated in 1986 and undertook the business and delivered the contracts to clients and Woodmace Plant Ltd (“Plant”) which was incorporated in 2013 and which held the plant and equipment used by the Company.

The Company began to experience financial difficulties as a consequence of large tier 1 main contractors delaying payment and/or withholding payment and running up large differences on accounts running into the millions of pounds. The position was exacerbated by extremely volatile cost inflation on materials due to the impact of the Covid 19 pandemic. The Company suffered a number of client failures and, as a consequence, a number of unrecoverable bad debts. As a result, the Company experienced pressure on cashflow and creditor pressure which led to legal debt recovery enforcement action being taken and winding up petitions being served on the Company. Credit insurance agencies removed credit limits which resulted in the business moving on to cash accounts which served to increase the creditor pressure. Ultimately a significant number of County Court Judgments and winding up petitions built up to an unsustainable level.

As a result of the operational challenges experienced by the Company it was unable to meet its obligations to Plant bringing about that company’s insolvency.

Statement of proposals: https://find-and-update.company-information.service.gov.uk/company/01989748/filing-history/MzM1MTIwNTcwMWFkaXF6a2N4/document?format=pdf&download=0
Companies House register: https://find-and-update.company-information.service.gov.uk/company/01989748

Contains public sector information from Companies House, licensed under the Open Government Licence v3.0.