Builder in administration days before bypass finish
THE company building a £13 million bypass road to ease congestion issues in Derbyshire has plunged into administration.
Nottingham-based NMCN had been appointed to build the new Woodville Bypass – but it has now emerged it suffered big losses after “significant cashflow pressures” last year.
Roads bosses at Derbyshire County Council had said the scheme – which involves building a long-awaited new road between Woodville and Swadlincote – would likely be finished by late September.
But NMCN’s administration has now cast serious doubt over when the new road will be ready.
The council said it could not confirm a completion date.
A spokesperson for the authority said: “Much of the work to build the road linking Woodville and Swadlincote is finished and we’re in discussions with our contractors and their administrators in order to complete the project as soon as possible.”
The Woodville Bypass is designed to take traffic away from congested Tollgate Island.
The road will stretch from Occupation Lane, Woodville, to Kiln Way, Swadlincote, leading on to Woodhouse Street’s junction with Derby Road.
The council says the project will unlock the development potential of the “Woodville regeneration area”, and cost around £13.44 million.
As well as the bypass, commercial units and 300 homes will be built, creating 3,100 jobs.
Eighty people in NMCN’s building division are set to lose their jobs, with no parties interested in taking it over.
Administrator Grant Thornton has, though, been able to sell other parts of the business, securing another 1,600 jobs.
NMCN had also been contracted to deliver projects including a 522-bedroom student complex in Nottingham, the city’s Trent Bridge Quays luxury apartment scheme and major roadworks around Liverpool Lime Street station.
SVELLA, which buys controlling interests in underperforming businesses, has bought NMCM’s telecoms, plant hire, transport and accommodation divisions, securing almost 700 jobs.
Galliford Try has bought its water business, including Lintott, for £1 million, protecting around 900 roles.
In a joint statement, Nigel Morrison, Helen Dale and Jon Roden, from Grant Thornton said NMCN Plc and NMCN Sustainable Solutions had worked hard throughout much of 2021 to deliver successful refinancing and secure the future of the business.
However, the problems it had faced and ongoing losses in 2021 were too severe to secure refinancing in the required timescale.
Grant Thornton director Rob Parker said: “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.”
COMPLETION DATE IS SET BACK AFTER FIRM SUFFERS BIG LOSSES