Belfast Telegraph

Co Tyrone pre-cast concrete company went out of business owing nearly £3m

Deal: Raymond Acheson
Deal: Raymond Acheson
Ryan McAleer

By Ryan McAleer

A Co Tyrone building materials firm entered administration last month owing creditors nearly £3m, new documents show.

Acheson and Glover called in the administrators for its precast concrete division in Ballygawley on November 6.

It followed the closure of a precast plant in Magherafelt earlier in the year. At that time the division employed 162 people. A total of 105 jobs, including 85 in Ballygawley, were still on the books when the operation entered administration.

Acheson and Glover had previously blamed uncertainty in the marketplace caused by Brexit for its losses earlier in 2018.

Last month the firm confirmed that demand for its precast products had continued to fall by between 35% and 40%, leading to further financial losses.

Documents seen by Business Telegraph show Acheson & Glover Precast Ltd entered administration owing creditors £2.9m.

Its biggest and only secured creditor, Bank of Ireland, was owed £900,000, while a number of other companies were owed six figure sums.

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It's understood that the creditors will be notified of the proposal for managing the debt in the coming week. A meeting of creditors is keen expected to take place.

Belfast-based business restructuring firm Keenan CF is handling the administration process.

The list of creditors reveals that just under £103,000 is owed to HMRC UK VAT.

Meanwhile, the company's continuing business, Acheson and Glover Ltd is owed £1m by its precast subsidiary.

Outside of banks and the parent company, the largest debt is owed to English precast flooring installer Beresford Flooring Ltd. Based near Derby, the firm is owed £230,500.

Other significant creditors include Wigan-based Ainscough Crane Hire (£103,920) and the Lagan Cement Company in the Republic, which is owed £100,000.

Within Northern Ireland, Hannon Transport and Brian Hughes and Sons Transport are among the creditors owed the largest sums.

A former holding group for Acheson and Glover previously entered administration in 2014, after suffering major losses during the construction sector downturn.

However, the company managed to continue trading after managing director Raymond Acheson reached a deal with Bank of Ireland to finance his purchase of subsidiary companies Acheson & Glover Ltd and Acheson & Glover Precast Ltd.

The company, which is headquartered in Fivemiletown, had employed just under 750 people during the pre-recession construction peak in 2007.

Belfast Telegraph