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Buyers circle Globe Management Services after it enters administration

Globe Management Services has received “a number of expressions of interest” in the business after it went under last week, its administrator has revealed.

A Baker Tilly Restructuring and Recovery spokesman told Construction News talks were at “a very early stage” but added that there had been interest both in the contractor and in a number of its ongoing contracts.

The spokesman said: “We are obtaining specialist input from quantity surveyors to assess the projects to understand what stage they are at, whether any can be novated, and whether there is the possibility of giving customers a ‘soft landing’ by offering project management or introductions to other contractors.”

Lindsey Cooper and Diana Frangou from Baker Tilly are the joint administrators to the Warrington-based firm and its parent company Aprilis Holding.

Baker Tilly said that another group company, Globe Construction Management, is expected to enter creditors’ voluntary liquidation.

The Baker Tilly spokesman said notices to convene a meeting of creditors would take place this week.

Globe operates as a main contractor but began trading in 1994 as a construction management firm.

In its full year results to 31 August 2013, Globe Management Services Ltd reported turnover of just under £30m, up from almost £26m the year before. It recorded pre-tax profit of £275,000, having made a loss of £332,000 the year before.

The group’s net assets had improved to £622,000, from £350,000 the year before.

Directors warned at the time that the current market conditions “remained very competitive” despite an improvement in its results year on year.

Globe’s construction arm has worked with major commercial property developers including Derwent and St Modwen.

It has also worked in sectors including education, industrial and retail for clients including Manchester University and Sainsbury’s.

The firm worked on schemes worth less than a million pounds up to more than £7m in value, according to projects listed on its website.

Globe Management Services has now made 60 redundancies, with a small number of staff members retained in the short term to help the administrators carry out their duties.

The administrators appointed an independent firm of quantity surveyors to assist in reviewing around 20 ongoing building projects across the North-west, for a range of private and public sector clients.

Ms Cooper said: “The financial issues faced by the business were such that the directors had little choice but to place the companies into administration.

“Regrettably, we have had to make around 60 staff redundant and our specialist employee team has been assisting them to make claims with the redundancy payments office.”

Insolvency Stats

In the year to 31 March 2014, the highest number of total liquidations was in the construction sector, according to statistics from the Department of Business, Innovation and Skills.

There were a total of 2,614 liquidations, of which 694 were compulsory and 1,920 were creditors’ voluntary liquidations.

This represented a quarterly decrease of 1.9 per cent from the year ending Q4 2013. Construction administrations were down by almost 19 per cent in the year to Q1 2014 compared with the same period in 2013.

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