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Jobs Saved As Livingston Windows Business Bought
After Ken Pattullo and Jamie Taylor of Begbies Traynor were appointed as joint administrators of Livingston’s Evoframes, a sale of the business and...
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Inflation Impact Kills Fixed Priced Housebuilder
Jehu Group, Jehu Project Services and Waterstone Homes have ceased trading. Begbies Traynor has been appointed to assist the directors put the companies into administration.
104 employees across the companies were made redundant on 21st October. Five members of staff have been retained to assist the directors.
Fixed price contracts
Delivering fixed-price contracts with single digit margins that were agreed before the pandemic, the group’s cash reserves have been decimated by cost increases in excess of 25%.
The businesses
Delivering construction and development projects for registered social landlords (RSLs) and local authorities (LAs) in Wales and the South West, Jehu Project Services had 15 live contracts with RSLs and LAs with a total remaining value in excess of £100m.
Waterstone Homes is a home builder due to deliver a further two contracts for RSLs.
Jehu Group provides support services for the other group members.
The collapse marks the closure of one of Wales’ leading construction and development businesses specialising in the social housing sector. The business was established in 1935 by Jack Jehu and has remained family-run across three generations, with a fourth generation becoming part of the workforce.
“This situation underlines the crushing impact of the current inflationary environment on an established and successful business”
– Huw Powell
Managing partner, Begbies Traynor South Wales
Cash-flow crisis
“Pre-pandemic, the group was highly profitable and by 2019 had almost £7m in net assets,” continues Begbies,” Powell. “It continued to win high profile projects and was an award-winning business. However, delays in completing projects caused by the pandemic and subsequent cost increases caused a severe cash-flow crisis that it could not recover from, despite support from key stakeholders.”
No salvation
Powell adds: “It is hugely disappointing to see the group cease trading in these circumstances and highly regrettable that efforts to secure its future were unsuccessful; the current political and economic turmoil were against them. We are aware of the negative impact that this will have on the supply chain and hope that sub-contractors will be able to work with the group’s customers to find the best possible solutions to complete existing projects.
Desolate hearts
The directors of the companies, Marc and Simon Jehu, add: “This is a truly devastating day for the business started by our grandfather over 85 years ago. Every possible option to keep the business alive has been completely exhausted and it is with desolate hearts that we find ourselves with no choice but to cease trading. We did everything possible to avoid closure but we were fighting a battle that simply couldn’t be won due to the successive economic shocks of the past couple of years.
“We understand this is a worrying time for our colleagues, supply chain partners and customers. We are working with Begbies Traynor to get the best outcome from an impossibly difficult situation.”
Make a claim
Further updates will be made when the information is available. In the meantime, creditors with urgent queries can email jehugroup@btguk.com
Picture: A CGI of one of Waterstone Homes' 'current' projects.
Article written by Cathryn Ellis
26th October 2022