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Administration · 6 October 2021

NMCN

Civil engineering · Sutton-in-Ashfield · East Midlands · Part of NMCN

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What happened

NMCN PLC (company number 00425188), incorporated in 1946, entered administration on 6 October 2021. Its status at Companies House is now: liquidation.

Why it failed

Trading losses and Covid-19 strained cash flow; the 2020 loss proved far larger than expected, accounts were delayed, and the refinancing and equity raise could not be completed.

  • Main reason: Cash flow
  • Covid-19
  • Funding withdrawn
  • 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: NORTH MIDLAND CONSTRUCTION PUBLIC LIMITED COMPANY, NORTH MIDLAND CONSTRUCTION COMPANY LIMITED.

Timeline

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

  1. 31 December 2019

    Last accounts filed were made up to this date

    18 months later

  2. 30 June 2021

    Last payment practices report ends: average 66 days to pay, 43% of invoices not paid to agreed terms

    4 months later

  3. 6 October 2021

    Administration started

    3 years later

  4. 16 August 2024

    Winding-up petition presented

    1 month later

  5. 16 September 2024

    Administration ended

  6. 16 September 2024

    Winding-up order made by the court

AccountsPayment reportInsolvency

Before it failed

Key figures

Turnover in its last accounts, year to Dec 2019
£404.7m
Accounts at Companies House
Net assets, year to Dec 2019
£20.9m
Accounts at Companies House
Average days to pay suppliers, 1 January 2021 to 30 June 2021
66 days
46% paid after 60 days, 43% not paid to agreed terms
Its last payment practices report
Owed to unsecured creditors (estimated), Administrators' proposals (company's books and records)
£60.5m
a further £18.1m owed to its lenders. Expected return to unsecured creditors: none expected
Administrators' proposals (company's books and records)
Staff when it failed, Administrators' proposals (company's books and records)
1,789
Administrators' proposals (company's books and records)

The last accounts filed were group accounts made up to 31 December 2019, 21 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

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