Reviewed: 27th October 2016
The construction services group Elliott Thomas is facing the prospect of having to place key elements of its operations into administration amid an ongoing financial crisis.
According to the Construction Enquirer, the business has been involved in a dispute over payment in relation to an apartment and hotel development project in south London.
Those issues are understood to have brought about some significant cash flow problems for Elliott Thomas, which has a workforce numbering more than 400 people, including self-employed contractors.
Reports suggest that staff members were being sent away from ongoing construction projects they should have been working on from Monday October 24th.
It remains unclear how many jobs might be lost but expectations are that administrators will soon be appointed to run the affairs of Elliott Thomas Logistics and the group’s main construction arm Prime Construction.
Prime Construction is understood to be at the centre of the cash flow crisis and a major payment dispute involving a multimillion pound development project at Bear Gardens on the banks of the River Thames in central London.
The Bear Gardens scheme has seen a new apartment/hotel complex erected at the Bankside site, with Prime Construction having been named as the principal contractor on the initiative in early 2014.
According to the Enquirer, Elliott Thomas’ construction arm is owed in the region of £2.5 million in relation to the project, on which its client was a Guernsey-based property developer.
The dispute is now expected to force Prime Construction and Elliott Thomas Logistics into administration, with the future for the employers of both businesses currently uncertain.
Pre-tax profits for the Elliott Thomas Group as a whole were worth close to £148,000 during the 12 months to March 2015, with its annual turnover figure put at almost £54 million.
The Bear Gardens development project is focussed on a site close beside the famous Globe Theatre on the River Thames’ south bank.
After being named principal contractor on the scheme in 2014, Prime Construction’s managing director Jim Tolputt said he felt his company’s “background in logistics and previous work in central London” made it “well-placed to excel” on the job. With 76 offices stretching from Inverness down to Exeter, Real Business Rescue can offer unparalleled director advice across the UK.