Groundworks specialist collapses with loss of 52 jobs

Groundwork and building contractor Ellicon Construction has collapsed.

Some 52 people were made redundant ahead of the appointment of administrators from Quantuma.

Established in 2002, Ellicon Construction Ltd was based on the Isle of Sheppey in Kent. The firm turned over £12.1m in 2019 and £10.6m in 2020.

It made a pre-tax profit of £338,179 in the year ended 31 May 2020, slightly down on the £380,070 it made in 2019.

A statement from Quantuma said the company was declared insolvent after being unable to meet liability payments “due to contractual difficulties and the knock-on effects of COVID”.

Joint administrator Duncan Beat said: “Family-run businesses are the lifeblood of the UK’s economy and it is regretful that Ellicon Construction is unable to continue to operate. In the circumstances we will be doing our best to maximise recoveries for creditors.”

Ellicon Construction’s last published accounts, for the year ended 31 May 2020, show that it owed creditors some £1.69m due within one year, down from £1.9m in 2019. It had 84 employees in 2020.

Beat said some former staff would be offered employment with contractors that have been appointed to take over its jobs.

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