Avonside Group Administration Confirmed as 79 Roofing Jobs Saved

IT HAS BEEN CONFIRMED that Avonside Group Services Limited has entered into administration today (7 September 2022), along with a number of its trading subsidiaries, including Avonside Roofing Limited.

It was also confirmed that 79 jobs have been saved through the sale of nine Avonside Roofing branches. More information about which branches have been sold is expected soon but is thought to include all three in Scotland and SM Roofing Contracts Ltd employing 14 people.

The Avonside Roofing branches sales are to an undisclosed “industry buyer” which will continue to operate the companies as going concerns. The remaining six Avonside Roofing branches and the Avonside Plumbing division will cease trading.

A buyer is still being sought for seven Avonside Energy branches and it is hoped negotiations will successfully conclude this week.

Kirstie Provan and Gary Shankland from corporate recovery and liquidation firm, Begbies Traynor are appointed as Joint Administrators to the Avonside Group.

The Avonside Group, which was the largest roofing contractor in the UK, provided specialist roofing, energy and plumbing services operating through 39 branches across its 3 divisions: Avonside Roofing, Avonside Energy and Avonside Plumbing. Together the Group employed 456 people.

Avonside Administration Confirmed

A spokesperson for Begbies Traynor said: “The Group experienced a period of disrupted trading during the pandemic which, alongside margin squeeze, the impact of underperforming divisions and financial reporting issues, resulted in a requirement for extended working capital facilities.

“Despite extensive efforts from the management team, shareholders and advisors, the Group has been unable to secure the necessary funding from existing stakeholders, or third parties, to effect the required turnaround and enable continuation of trade in the current form.

“Following an accelerated sale process, the Joint Administrators have secured the future of 9 Avonside Roofing branches, preserving 79 jobs via an administration sale to an industry buyer, which will see this part of the business continue as a going concern.

“Despite a positive outcome for a number of the Group’s Roofing branches, the difficult macro-economic backdrop and market conditions has meant that the Joint Administrators were unable to find suitable buyers for the remaining Roofing and Plumbing sites within the Group and as such all remaining Roofing and Plumbing branches are expected to be closed imminently.

“The Group’s Energy Division continues to operate out of its 7 branches whilst negotiations continue to sell this division solvently.  Negotiations are advanced and it is hoped that these will be concluded successfully over the next 24 hours.”

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