Essex contractor files administration notice as part of restructuring

Chelmsford-based civils and groundworks contractor EJ Taylor & Sons Ltd has filed a notice of intention (NOI) to appoint administrators as part of a proposed restructuring plan.

The NOI is designed to give a degree of financial protection to the family-run business while it markets itself with the view to a pre-packaged sale, the company said.

As such, it will continue to trade as normal and said it would continue to honour payments to suppliers and subcontractors.

The proposed administrator is Glyn Mummery of FRP Advisory.

Confirming that an NOI had been filed and that there would be no impact to ongoing projects, managing director Samantha Peck said EJ Taylor & Sons was “working with professional advisers to achieve the best outcome for everyone associated with the business via a sale to a new company backed by existing stakeholders”.

She added: “The intention is to complete this transaction in the new year with no break in trading, protecting current projects and jobs.

“The business continues to trade normally in the meantime and will continue to make supplier and subcontractor payments. We will make a further announcement as soon as the transaction completes.”

Mummery said: “We are supporting the directors of EJ Taylor & Sons through a restructuring process that is intended to safeguard the long-term future of the business.

“Filing the NOI provides the necessary breathing space to progress a sale and protect the company’s operations. Our immediate focus is on helping the directors achieve a going concern outcome that preserves jobs and ensures continuity for clients and the wider supply chain.”

In its latest published annual accounts, covering the year to 31 March 2024, EJ Taylor & Sons made a pre-tax loss of £2.8m on a turnover of £41.1m.

It saw an 89 per cent fall in its cash position from £1.7m to £192,370.

The company employed a monthly average of 140 staff.

It was established in 1963 by Edgar Taylor, and grew into the larger EJT Group, of which EJ Taylor & Sons is a part.

Other parts of the group ─ which encompasses construction, design coordination, repair and refit, groundworks, and commercial fleet servicing, as well as a community and charity arm ─ had not filed an NOI at the time of writing.