The Scanmoor Group has dramatically collapsed after 12 years of rapid expansion.
The Middlesex-based contractor launched in the civil engineering and groundworks sector in 1995, but expanded over the years to cover rail, building, and special projects.
In September 2005 the firm could boast a turnover of £73.8m, up from £36.9m the previous year. However, the pre-tax profit margin was thin at £1.2m and Scanmoor’s subsequent expansion into the North of England and Romania seems to have stretched the firm too far. As a result, the company sank into administration last weekend.
Scanmoor Group had won large contracts in recent years. These included a £27.5m contract to construct the Western Ticket Hall at King’s Cross station from 2001 to 2004; a £9.9m civil and structural works with Multiplex at Wembley stadium from 2004 to 2005; and a £6.6m contract with Taylor Woodrow, which involved the demolition, construction and refurbishment of bridges on the East London line.
Administrator Vantis confirmed that Scanmoor had been placed into administration and said it was working to ensure that the company’s contracts are completed where deemed feasible. Vantis added that it is too early to assess the outcome for creditors.