Contractor nmcn (previously known as North Midland Construction) has announced that it is unable to continue as a going concern and is calling in administrators.
Helen Dale, Nigel Morrison and Jonathan Roden of Grant Thornton have been appointed to oversee the company’s affairs and those of its subsidiary, nmcn Sustainable Solutions. The remaining companies in the group are currently unaffected.
Publicly listed nmcn’s shares were suspended in June after the company experienced delays getting its 2020 accounts signed off by auditors. It missed a series of later dates to file its accounts and warned last week that it would miss the latest deadline of 1 November. That meant a £24m refinancing deal with Svella and other investors, agreed in June, would not be completed as planned.
In a statement, nmcn said: “The board, its advisers and Svella have worked tirelessly in the intervening period. However, as previously notified, completing the preparation of the group’s accounts has revealed further underlying contractual issues with expected losses rising to £43m.
“It has now become apparent that the company will be unable to approve the audited financial statements in a timely manner to allow the proposed transaction to complete within the required timeframe. This in turn has led to significant liquidity issues for the group and particularly the company, which unfortunately is now considered to no longer be able to continue trading as a going concern.”
It added that it had received offers to acquire certain trading operations or subsidiaries of the group on a going concern basis and that discussions were ongoing.