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Administration · 2 October 2023

Michael J. Lonsdale

Specialist trade · Langley · South East England

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What happened

MICHAEL J. LONSDALE LIMITED (company number 02066642), incorporated in 1986, entered administration on 2 October 2023. Its status at Companies House is now: liquidation.

Why it failed

Covid, Brexit and Ukraine-war cost rises and delays, then 2023 insurer credit downgrades, created a cash need that Arbuthnot and White Oak loan offers did not meet in time.

  • Main reason: Funding withdrawn
  • Cost inflation
  • Delays
  • Covid-19
  • Losses on contracts
  • Cash flow

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.

Timeline

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

  1. 30 September 2022

    Last accounts filed were made up to this date

    13 months later

  2. 2 October 2023

    Administration started

    2 years later

  3. 2 October 2025

    Administration ended

  4. 2 October 2025

    Creditors' voluntary liquidation started (shareholders resolved to wind up)

AccountsPayment reportInsolvency

Before it failed

Key figures

Turnover in its last accounts, year to Sept 2022
£191.2m
Accounts at Companies House
Profit before tax, year to Sept 2022
£2.5m
Accounts at Companies House
Staff, year to Sept 2022
237
Accounts at Companies House
Net assets, year to Sept 2022
£5.2m
Accounts at Companies House
Owed to unsecured creditors (estimated), as at 2 October 2023
£117.7m
of which trade creditors £64.9m. HMRC owed £1.8m. a further £46k owed to its lenders. Expected return to unsecured creditors: none assumed by the administrators
Administrators' proposals (includes £50m owed to group companies)

The last accounts filed were full accounts made up to 30 September 2022, 12 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

Michael J Lonsdale: how a debt-free contractor failed in four months, and 8 checks to protect your business

Michael J Lonsdale was a London mechanical and electrical contractor with a 37-year history, no borrowing and, at times, close to £40 million in the bank. In June 2023 it filed accounts showing a £2.5 million profit. Four months later it was in administration, owing an estimated £118 million to unsecured creditors.

Turnover in its last accounts
£191.2m

Turnover in the year to September 2022

Source: Michael J. Lonsdale Limited annual report and accounts for the year to 30 September 2022, filed at Companies House 17 June 2023

Profit before tax in those accounts
£2.5m

Profit before tax, a margin of 1.3%

Source: Michael J. Lonsdale Limited annual report and accounts for the year to 30 September 2022, filed at Companies House 17 June 2023

Owed to unsecured creditors, including £50m to group companies
£117.7m

Owed to unsecured creditors, including about £64.9m to trade creditors and about £50m to group companies

Source: Joint Administrators' statement of proposals for Michael J. Lonsdale Limited (in administration), Begbies Traynor, filed at Companies House 30 November 2023

Expected back for unsecured creditors
Nothing assumed

For unsecured creditors in the administrators' estimate

Source: Joint Administrators' statement of proposals for Michael J. Lonsdale Limited (in administration), Begbies Traynor, filed at Companies House 30 November 2023

Read the full report

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