Listed contractor collapsed into administration earlier this week
The would-be white knight of NMCN has snapped up several parts of collapsed firm NMCN which went into administration earlier this week.
Svella, which agreed a refinancing deal with the stricken contractor earlier this summer, said it has picked up NMCN’s telecoms, plant hire, transport and accommodation divisions.
It added nearly 700 jobs had been saved as result although it is thought at least that number hang in the balance at NMCN’s civils and building arms.
The telecoms business’s clients include BT and Virgin Media and Svella chairman Andrew Tinkler said 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”.
He added securing the plant business would ensure the telecoms arm remained a going concern with Svella expected to build up the plant hire business into which would rent out machines to third parties.
NMCN announced on Monday it would be calling in administrators from Grant Thornton after conceding defeat over when it would be able to publish its 2020 results on which a rescue deal had hung.
It had previously flagged losses for the year would be at least £43m because of problem water contracts and issues with its building arm. In its last set of results, the firm had a £405m turnover in 2019 and close to 1,400 employees.
Grant Thornton was formally appointed administrator yesterday (6 October).
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