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Administration · 4 September 2023

Buckingham Group Contracting

Main contractor · Buckingham · South East England

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What happened

BUCKINGHAM GROUP CONTRACTING LIMITED (company number 02181671), incorporated in 1987, entered administration on 4 September 2023. Its status at Companies House is now: administration.

Why it failed

Inflation-hit Sports & Leisure contracts, a loss-making civils project and delays drained cash; invoice finance fell to nil, HMRC refused more time and no funder or buyer emerged.

  • Main reason: Losses on contracts
  • Cost inflation
  • Delays
  • Cash flow
  • Funding withdrawn
  • HMRC debts
  • Sale or investment failed

Our summary of the reasons given in the administrators' proposals. These record the administrators' and directors' account of what happened.

An administrator, a licensed insolvency practitioner, takes control of the company to try to rescue it, sell the business or get a better result for creditors than a liquidation.

Previously known as: BUCKINGHAM PLANT HIRE (CONTRACTING) LIMITED, TOURMAKER LIMITED.

Timeline

The last accounts and payment report before the failure, then what happened, with the time between each.

  1. 31 December 2021

    Last accounts filed were made up to this date

    18 months later

  2. 30 June 2023

    Last payment practices report ends: average 39 days to pay, 14% of invoices not paid to agreed terms

    3 months later

  3. 4 September 2023

    Administration started

AccountsPayment reportInsolvency

Before it failed

Key figures

Turnover in its last accounts, year to Dec 2021
£665.3m
Accounts at Companies House
Loss before tax, year to Dec 2021
£10.7m
Accounts at Companies House
Staff, year to Dec 2021
658
Accounts at Companies House
Net assets, year to Dec 2021
£22.0m
Accounts at Companies House
Average days to pay suppliers, 1 January 2023 to 30 June 2023
39 days
5% paid after 60 days, 14% not paid to agreed terms
Its last payment practices report
Owed to unsecured creditors (estimated), as at 4 September 2023
£198.5m
of which trade creditors £108.0m. HMRC owed £25.0m. Expected return to unsecured creditors: none expected
Administrators' proposals

The last accounts filed were full accounts made up to 31 December 2021, 20 months before it went into administration.

The full filing history, including any late filings, charges and director changes, is on Companies House.

Lessons learned report

Buckingham Group: how a £665m contractor ran out of cash, and 8 checks to protect your business

Buckingham Group built railways, HS2 works, stadiums and leisure centres. In its last accounts it turned over £665 million. On 4 September 2023 it went into administration, owing an estimated £198 million to unsecured creditors, £108 million of it to trade creditors. Nothing is expected for them.

Turnover in its last accounts
£665.3m

Turnover in 2021, its last published accounts

Source: Buckingham Group Contracting Limited annual report and accounts for the year to 31 December 2021, filed at Companies House 21 December 2022

Staff when it failed
669

Staff when it failed; 180 moved to Kier and 489 were made redundant

Source: Joint Administrators' proposals for Buckingham Group Contracting Limited (in administration), Grant Thornton UK LLP, filed at Companies House 4 October 2023

Owed to unsecured creditors
£198m

Owed to unsecured creditors, including £108m to trade creditors

Source: Joint Administrators' proposals for Buckingham Group Contracting Limited (in administration), Grant Thornton UK LLP, filed at Companies House 4 October 2023

Expected back for unsecured creditors
Nothing

Source: Joint Administrators' proposals for Buckingham Group Contracting Limited (in administration), Grant Thornton UK LLP, filed at Companies House 4 October 2023

Read the full report

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