Engineering firm Owen Pugh goes into administration
Cashflow problems that arose as a result of loss-making projects have been blamed for North-east engineering company Owen Pugh Group going into administration, putting more than 300 jobs at risk.
The privately-owned company, based in Dudley, Newcastle-upon-Tyne, offers a variety of services including civil engineering, drainage and sub-structures, bulk earthworks, and plant hire.
Grant Thornton’s Christopher Petts and David Dunckley have been appointed joint administrators of Owen Pugh Group.
According to Petts, Owen Pugh Group experienced significant cash flow pressure in 2017 as it embarked on a number of large and high-profile projects “which have, ultimately, proved to be commercially unsuccessful”.
He said: "This has seen the cash position deteriorate significantly in recent months. Despite having sourced additional external investment during July 2017, cash pressure intensified culminating in parts of the group being presented with winding up petitions in recent weeks, which they have been unable to satisfy.”
Petts added that “a number of prospective buyers have already expressed an interest in acquiring parts of the business and assets of the group”, although he could provide any certainty on how these discussions will progress.
- Procurement process starts for Thames tunnel's £800M East package The procurement process for the £800M East package of work to construct London's 25km Thames Tideway Tunnel is now... Read More >
- Two water companies fined over sewage pollution Severn Trent Water and Northumbrian Water have both been fined thousands of pounds by magistrates having been taken to... Read More >
- Black and Veatch opens hydropower 'centre of excellence' in Singapore Black & Veatch has opened a Hydropower Centre of Excellence in Singapore, as it looks to tap into the rising appetite... Read More >
- A Time to Skill: how can water face its workforce challenges? Faced with the double challenge of an ageing workforce and a potential barrier to bringing in EU talent due to Brexit, how... Read More >
- Reliability engineering key to resilience As a result of the 2014 Water Act and Ofwat, water companies are increasingly studying how resilient they might be to... Read More >
- Comment: A dynamic response to change Market changes in the water industry mean that contractors must step up play a bigger and more responsible role in... Read More >
- Interview: Prof Rudi Klein, chief executive officer, SEC Group "The wait - that is the real problem," says Professor Rudi Klein on the subject of cash retentions in construction... Read More >
- Front Line: Digging Scottish Water's Shieldhall Tunnel In this month's Front Line feature we meet Tom Rushe, who is part of a team of engineers working on Scottish Water's £100M... Read More >