Three divisions of collapsed construction and engineering company, nmcn, have been sold, safeguarding jobs for over 1,500 people.
On 6 October 2021, Nigel Morrison, Helen Dale and Jon Roden, all of Grant Thornton UK LLP, were appointed as Joint Administrators of NMCN PLC and NMCN Sustainable Solutions Limited (SSL), construction and engineering firms based in Nottinghamshire and with operations throughout the UK.
Following significant cashflow pressures experienced in 2020 and subsequent losses incurred by the business, the Group and its advisors worked throughout much of 2021 to deliver a successful refinancing and secure the future of the business. However, the legacy issues faced by the Group and ongoing losses in 2021 were simply too great to enable the refinance to succeed in an acceptable timescale.
While three divisions have been sold, due to a number of legacy contract issues the Joint Administrators have not been able to achieve a sale of the Group’s Buildings division, which has resulted in the redundancy of 80 people.
Rob Parker, director at Grant Thornton UK LLP, said on behalf of the Joint Administrators: “The Joint Administrators are very pleased to confirm the sales of three of the divisions of the Group and are in continued dialogue for the sale of the Infrastructure division in the coming days.
“The sale of the three divisions safeguards jobs for over 1,500 people.
“The Joint Administrators intend to continue to operate part of the Group’s head office function, in support of Svella plc, the purchaser of the Telecoms and Plant divisions, as well as Galliford Try Water Limited, who purchased the Group’s Water division.
“It is, however, with regret, that due to a number of legacy contract issues, the Joint Administrators have not been able to achieve a sale of the Group’s Buildings division, which together with some other central roles in the Group has resulted in the redundancy of 80 people. The Grant Thornton team will work with the employees affected to support them through this process.”
Andrew Tinkler, SVELLA chairman, said: “The acquisition of the telecoms, plant, transport and accommodation business divisions by SVELLA safeguards over 680 important skilled roles and secures continuity of service for key national telecoms clients.
“nmcn was one of the UK’s fastest-growing telecoms contractors and was actively supporting the government’s ambitions for nationwide coverage of ultrafast fibre broadband through a number of significant infrastructure contracts and frameworks. We aim to continue to deliver on these ambitions.”
Included in the Water division sale, the Joint Administrators secured the sale of Group subsidiary company, Lintott Environmental Technologies Limited (Lintott).
Bill Hocking, Chief Executive of Galliford Try, said: “I am delighted to welcome the employees, clients and suppliers of nmcn Water to Galliford Try.
“This acquisition is an excellent strategic fit with our existing business and will accelerate the growth of our successful Environment division, providing work with new clients and increasing our capabilities. This is a very exciting time as we deliver our Sustainable Growth Strategy and I look forward to a bright future for our collective team.”
The Joint Administrators said they would like to thank the efforts of Lee Marks, Alan Foster and NMCN team for their hard work in achieving these sales and were advised in the transactions by Pinsent Mason LLP, Gordon Brothers International, LLC and Irwin Mitchell LLP.