Firm, founded in 1930s, employed over 100 people
One of the country鈥檚 best-known regional contractors has gone into administration with more than 100 jobs now at risk.
Pochin鈥檚, which is based in Middlewich, Cheshire, has appointed Grant Thornton as administrator after running up problems on a number of historical jobs. The firm was founded in the 1930s as a joinery business and employs 120 people with more than 90 working for the contracting arm.
Pochin鈥檚 Ltd, which includes its construction and property businesses, racked up a pre-tax loss of 拢3.4m on turnover down 14% to 拢59m in the year to February 2018.
The accounts, which are the latest to be filed at Companies House, blamed a residential construction job, believed to be in Manchester, for sinking into the red.
Separate figures filed by its construction arm, Pochin Construction, which accounted for just over 拢50m of the group鈥檚 2018 revenue, show it racked up a 拢6.3m pre-tax loss which it blamed on the problem Manchester job.
It added: 鈥淭he contract has now been completed and a substantial claim has been compiled against the architect on the contract given significant design failings.鈥�
Following the losses, Pochin鈥檚 brought in Jon Adams, a former Balfour Beatty executive who was responsible for that firm鈥檚 major projects in the north, last April to run the business. It added that 鈥渃hanges [have been] made to ensure that we do not have inappropriate professional teams imposed upon us on other contracts鈥�.
Last June, the firm said its contracting business was working on a dozen schemes 鈥� a 拢15m PRS scheme in Stoke-on-Trent, a logistics facility for courier DPD in Chadderton, Oldham, and De Trafford Estates鈥� Manchester Gardens student accommodation project which features three developments in Castlefield.
But in a statement released by Grant Thornton 鈥渢he legacy issues from earlier contracts became too great a burden leading to difficult trading conditions鈥�.
It said it had looked into pumping more of its shareholders鈥� money into the business and selling off its property arm.
It added: 鈥淒espite these efforts, the impact of the challenges have proven insurmountable and the difficult decision was reached by the directors to place a number of entities in the group into administration.鈥�
These include Pochin鈥檚 Ltd, Pochin Construction Ltd and six other subsidiaries.
Pochin鈥檚 chief executive Jim Nicholson led a family buyout of the firm in 2014. His grandfather was company founder Cedric.
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