JME Developments Limited (07137465): administration
- Status
- In administration
- Administration began
- 2024-04-29
- Administrators
- Rachel Fowler
- Administrators' firm
- Rachel Fowler Advisory
- Formerly
- JME Civils Limited
- Incorporated
- 2010-01-27
- Location
- Birmingham
- Industry
- 41100 Development of building projects
Why it went into administration
- Rising costs / inflation
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Property / lease costs
- Rising interest rates
From the administrators' statement
In the year to 28 August 2022 the business generated £6.8m in revenue, this fell to just £3.5m in the year to 28 August 2023 (based on draft accounts).
The year to 28 August 2023 was difficult for house builders in that demand was slow due to higher interest rates and development costs escalated due to rising inflation. The business reported a trading loss of c.£570k in that year. The Company’s arrangement with lenders was such that further advances were made on completion of house sales, however as the market slowed the cash constraints of the Company became apparent. In addition the rising cost base meant that additional funding would be required to enable trade to continue.
The Directors initially sought advice from the Company accountant who recommended RFA’s services. Administrator’s prior involvement
Administrators' statement of proposals (2024-07-31) · Companies House register