Groundworks firm could take £2m hit if Ilke collapses

Essex-based groundworks contractor Tamdown faces a £2m hit if ailing modular housebuilder Ilke Homes collapses.

The firm’s AIM-listed parent Nexus Infrastructure issued a profit warning yesterday after Ilke had filed notice of its intent to appoint an administrator.

The notice gives Ilke 10 working days protection from creditors as it seeks to secure a sale or new investment.

Last week, Ilke said it was in talks with up to 15 investors regarding a sale but to date no deal has been concluded.

According to the Nexus statement, Tamdown has been in discussion with Ilke over outstanding invoices relating to two developments, both of which have been paused.

“There is a risk that Tamdown will be unable to collect these amounts, which would have a significant impact on group profit during the current financial year,” it said.

Tamdown had been anticipating additional turnover amounting to approximately £4m over the rest of the current financial year.

The overdue amount is valued at £835,000, with a further £962,000 for work delivered up to 31 May becoming due soon.

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“There is further work in progress in the region of £250k relating to the period in June prior to work on the sites being paused by Ilke Homes,” it said.

In its last set of results, Tamdown, which is based in Braintree, improved turnover to £98.4m in the year to September 2022 and returned to the black with a pre-tax profit of £709,000 from a £772,000 lost the year before.

Nexus said its balance sheet remained robust, with cash and cash equivalents of £15.9m at the half-year ended 31 March 2023.