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Jobs lost after ER Hemmings and ERH Construction enters administration following ‘significant losses'

The directors of Bristol-based ERH Group have confirmed its building and construction arms will enter administration following “significant trading losses”.

In a statement on ERH Group’s website, the directors said a financial restructure had resulted in the closure of its building and construction businesses, ER Hemmings and ERH Construction, “causing the unfortunate loss of a small number of jobs”.

The directors have filed a notice of intention to appoint administrators to the businesses by the end of this month, and are working with advisers at Grant Thornton to restructure the remaining parts of the group.

In the statement, they said “very difficult trading conditions of the past few years” had caused “significant trading losses” in the building and construction businesses.

ERH Group director Ernie Hemmings said that “having traded for 44 years, it is devastating to find what has occurred in the group over the last two years”.

He added: “I am immensely grateful for the support of our customers, creditors, workforce and dedicated team of senior managers working with Grant Thornton to secure a profitable viable business going forward.

“The support we have received is appreciated and very humbling.”

Bristol-based ERH Group reported pre-tax profit of £1m on a turnover of £41.7m in its most recent accounts filed at Companies House, for the year ended 31 December 2012.

ERH Holdings and ERH Communications, which provide installation, maintenance and construction services to roadside communications and traffic management, will continue to operate.

Employees of the building and construction arms would be moved to the communications business where possible, the statement said.

“Following a recent senior level and board restructuring that has seen five directors leaving the group, the remaining board is confident Communications and Holdings is now on a sound footing to trade successfully going forward and seeks continued support from customers, suppliers and employees,” it added.

Readers' comments (1)

  • I wonder how ERH Construction and ERH Building creditors will be treated in this "re-structuring"? I understand that some contracts have been transferred to ERH Communications for completion - will suppliers and sub-contractors be expected to give credit terms to Communications after incurring a bad debt to Construction in order for Communications to complete the contract and pocket the profit?

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