Rescue hopes for 46-year-old firm founder in last few days

Midas chairman Steve Hindley has blamed the impact of the pandemic after the 46-year-old firm collapsed into administration yesterday with the loss of more than 300 jobs.

The Exeter-based contractor is the biggest name to fold since listed civils and building firm NMCN went under last autumn.

Administrators from Teneo Financial Advisory were formally appointed yesterday, announcing that all jobs have stopped and 303 people made redundant.

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The firm’s Mi-space property business has been offloaded to Scottish rival Bell

Scottish firm Bell Group has picked up the stricken contractor’s Mi-space property arm, announcing last night that it had saved 110 direct and indirect jobs as a result.

But the rest of the Midas, set up in 1976, is now in the hands of joint administrators Richard Hawes and Matt Smith after a frantic battle to save the business from collapse foundered in the last few days.

Hindley, who has been with Midas more than 20 years, said: “The disruption and supply chain inflation caused by the covid-19 pandemic resulted in a number of critical contracts being postponed or cancelled.

“The resultant impact on the Group’s working capital led to severe liquidity pressure and meant the Group was no longer able to operate.

“It has been a great privilege to work with our many employees, suppliers and customers over the years and my heartfelt thanks goes to them for the tremendous support that they have given to the business.”

In a statement, the administrators said: “This is a very challenging period for the Group’s stakeholders and in particular its employees and sub-contract supplier base.

“Our immediate focus is on ensuring the impact on employees, creditors and customers is minimised.”

Midas had been on the brink since last month when it emerged it had filed a notice of intent to appoint an administrator.

In its last set of accounts, the firm had a turnover of £291m and made a pre-tax loss of £2.4m in the 18 months to October 2020. In the 12 months to April 2019, turnover was £259m with the firm posting a pre-tax profit of £751,000.