The Royal Victoria Pavilion in Ramsgate
West Yorkshire-based construction firm Sanderson Contracts has ceased trading with immediate effect, resulting in the loss of 34 jobs.
The company, founded in 1999, decided to appoint administrators after a review of its financial position.
Undertaking contracts throughout the UK and Ireland, it specialised in development, fit-out and refurbishment contracts in the pub and restaurant sector, becoming involved in hotel development and new build projects in more recent times.
Among its past projects were the £3.2m refurbishment of the Victorian Pavilion in Ramsgate, Kent, to make what is claimed to be the largest pub in the UK for JD Wetherspoon. It also worked on the £8m construction of the DoubleTree by Hilton hotel in Chester and the £1.3m fit-out of Formica’s head office.
However, it said uncertainty and a decline in spending in the leisure sector has resulted in “difficult trading conditions”.
Its financial accounts for the year to 31 March 2018 showed that turnover was £31.2m, up slightly on £30.6m the year before. However, its pre-tax profit had slumped to £232,341, down from £1m the year before.
Managing director Ian Sanderson, who founded the company, said: “The board of directors are devasted to be ceasing to trade after 20 years in business. In that time, we have developed long standing relationships with our customers and suppliers. Like many in the construction sector, we have experienced very difficult trading conditions as projects have been cancelled or delayed in the current economic climate and issues on a number of large-scale developer led projects have negatively impacted the company.
“As soon as we became aware that income was not materialising as quickly as we had anticipated, we sought to take prompt action to minimise losses to our supply chain and customers.
“It is regrettable that job losses are anticipated as we have grown and invested in our workforce over the last 20 years and employ highly skilled people.
“The board remain committed to working with the administrators to maximise asset recoveries and are hopeful that a return can be made to creditors in due course.”
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