Lancsville Construction collapsed because of overtrading, its administrator has revealed
The £131m-turnover firm became the latest medium-sized victim of the recession at the end of last year. It was put into administration after it failed to repay a £10m loan given to the firm in 2008 by distressed lending specialist Agilo.
Nick O’Reilly, an administrator at Vantis, said overtrading had played a large part in the firm’s demise. “Lancsville experienced a rapid growth over the last year but it didn’t have the infrastructure to sustain this,” he said.
The firm, owned by the Henry family, traded for more than 30 years, and was employed as a main contractor on projects including the £28m Iylo residential scheme in Croydon, and a £40m Thames Gateway mixed-use development.
Credit reference agency Top Service said the firm had been plagued by financial problems and county court judgments since 2007.
Its collapse came despite last-ditch efforts to reach a rescue deal with lenders. Last October, Lancsville finance director Gordon Wright told Building that a deal was being negotiated but O’Reilly said the firm had been unable to replace investor Agilo. He added that it was unclear how many creditors would be paid.
Henry Construction and Henry Cranes, which are owned by the same family, have also been placed into administration.