Lagan puts construction arms into administration
Chairman Michael Lagan said that parts of the group had been hit by a number of factors within the civils and building divisions including delays in the commencement of new projects, protracted contractual disputes on some existing major projects and instability caused by a joint venture partner in Great Britain.
Lagan said “It is with great sadness and reluctance that we have had to take this course of action.
“We have had long standing relationships with many of subcontractors and suppliers.
“We hope that the process of administration will be smooth and that disruption to both projects and jobs will be minimal.”
Lagan Construction Group currently employs eight hundred people and up to two hundred employees may be affected by the administrations.
The company said it hoped some of those jobs could be transferred to joint venture partners whilst others may be relocated to existing divisions within the group.
Mr Lagan added: “The difficulties which have arisen within the Civils and Building divisions has meant that the Directors of the affected four companies had no option but to immediately serve notice on the court to appoint an administrator.”
The four Lagan companies being put into administration are: Lagan Construction Group Holdings Limited, Lagan Construction Group Limited, Lagan Building Contractors Limited and Lagan Water Limited.
The remaining 26 Lagan Construction Group companies include Lagan Operations and Maintenance Limited, FK Lowry Piling Limited, Dew Piling Limited, H&J Martin Limited, Lagan Construction Aviation Limited, Lagan Construction Limited, Lagan US inc, Lagan Plant Limited and Lagan Projects Investments Limited, Coastal Industrial Limited and Lagan Construction Services Limited.
Latest accounts filed for Lagan Construction Group show the firm made a pre-tax profit of £7.6m in the year to March 2016 on a turnover of £226m.
Lagan Construction Group is a separate entity to Lagan Group after the original business split in 2010.
Lagan Group is currently in takeover talks with Breedon.