Buckingham Group

Last updated

Buckingham Group Contracting Ltd
Industry Construction
Founded1 October 1987 (1987-10-01) (incorporated)
Defunct4 September 2023 (2023-09-04)
Fateadministration
Headquarters
Stowe, Buckinghamshire, England, United Kingdom
Area served
United Kingdom
Key people
Ian McSeveney (managing director)
Website www.buckinghamgroup.co.uk

Buckingham Group Contracting Ltd was a construction company, originally founded in 1955. It was located near Stowe, between Buckingham and Silverstone in north Buckinghamshire and operated throughout England and Wales. It went into administration in 2023 with the loss of over 400 jobs and owing over £302 million to creditors and employees.

Contents

History

It was established in 1955 as Buckingham Plant Hire by founders Paul Wheeler and Patricia Wheeler. [1] The company incorporated in November 1987 as Buckingham Group Contracting Ltd. [2] The company became established as a main contractor undertaking major construction and civil engineering projects, which was headed by Ian McSeveney for many years. McSeveney eventually became the managing director of Buckingham Group. [3]

The company undertook numerous types of civil engineering projects during its existence; it would typically operate as a principal contractor, undertaking major multi-disciplinary construction projects. [4] Such undertakings included business parks, bypasses, and airport faculties. [5] [6] [7]

The company built several sports-related buildings including the £30m London 2012 Olympic handball arena (now known as the Copper Box), a £30m pit lane development for the Silverstone Circuit, and the £93m Falmer Stadium for Brighton and Hove Albion FC. [8] [9] [10] During 2015, Buckingham Group launched legal action against Northampton Town Football Club over an outstanding sum of £4.8m that it was allegedly owed in relation to the East Stand project. [11] In the early 2020s, the company's work on sports stadiums was cited as one of the primary sources of its fiscal stress, three such projects, one being Fulham's Craven Cottage, were allegedly responsible for steep losses for Buckingham Group and incurring financial commitments that led to financial hardship for the whole company. [12] [13]

In 2019, it was reported that Buckingham Group had recorded a record-breaking turnover of £507 million during the previous financial year. [14]

Rail activities

Buckingham Group also undertook numerous railway-related civil engineering works. During 2014, a joint venture between Carillion and Buckingham Group was awarded an £87 million contract from Network Rail for works related to the East West Rail project and Chiltern Railways' Oxford and London route. [15] Shortly thereafter, the company was contracted to perform some of the enabling works for electrification schemes underway in North West England. [16] [17] In mid-2021, it was announced that Buckingham Group had secured a £55 million contract for the delivery of numerous works on the Tyne and Wear Metro, largely centered around the upgrading and electrification of an existing freight line in South Tyneside. [18] The firm was also involved in the refurbishment of major structures such as the Runcorn Railway Bridge. [19] The company was also involved in the construction of elements of Daventry International Rail Freight Terminal along with various maintenance depots, car parks, and other facilities. [20] [21] [22]

Following the COVID-19 pandemic, the company announced that it planned to redirect its focus towards its railway-related activities, including work on the High Speed 2 project. [23] During September 2023, rival construction company Kier Group purchased Buckingham Group's rail business in exchange for £9.6 million, leading to the transfer of 180 employees. [24] [25]

Restructuring, collapse, and administration

During September 2021, both the leadership and ownership of Buckingham Group changed drastically; several directors, including the Wheelers, that formerly held a stake in the company agreed to transfer 100% of their equity into the Buckingham Group employee ownership trust, after which they stepped down from their roles in its management. The move turned Buckingham Group into the largest construction contractor in Britain to be taken over by its employees. [1] [26]

On 17 August 2023, the company filed for administration, impacting several ongoing projects, including a £80m 7,000-seat stand at Liverpool's Anfield stadium, a stand at Northampton Town's Sixfields Stadium, redevelopment of Birmingham City's St Andrew's stadium, restoration of Whitley Bay Metro station, new sidings at Beckton for the Docklands Light Railway, and the mixed-use £135m Copr Bay development in Swansea. [27] [28] [29] [30] [31] [32] In September 2023, the group formally went into administration, with Grant Thornton appointed as administrators. [33] Shortly thereafter, 446 staff — across building, civil engineering, demolition, major projects, and sport and leisure operations — were axed, while several ongoing projects were taken over by other firms. [34] [29] [35] It was the biggest collapse in Britain's construction sector since the liquidation of Carillion in January 2018. [33]

Subcontractors were reportedly owed in excess of £100m. Debts on Liverpool's new Anfield Road Stand alone were around £20m. [36] A 29 September 2023 report from the administrator Grant Thornton confirmed trade contractors and suppliers were owed over £108m, with 1,200 unsecured creditors unlikely to see any kind of return. Buckingham Group had around £5m in the bank when it entered administration. [37] In January 2024, the total trade debt was revised upwards to £113m, while Buckingham’s employees were owed a further £8.2m. [38] In April 2024, administrators revealed that 1,375 claims had been received, revising the total trade debt to £256m; this total could rise further as claims from former employees progress through tribunals. [39] In October 2024, Grant Thornton said it had received 1,391 claims worth £302.2m, with suppliers and subcontractors unlikely to receive any payments. [40] The group's plant hire business, Buckingham Plant Hire, was initially said to be unaffected by the collapse of the contracting arm and continued to trade profitably. [41] However, it was owed around £1.8m, according to the administrator's creditors' report. [37]

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References

  1. 1 2 "Buckingham Group taken over by employees". pbctoday.co.uk. 6 September 2021.
  2. ↑ "Company Background". Buckingham Group. Archived from the original on 30 November 2012. Retrieved 7 January 2013.
  3. ↑ Gerrard, Neil (6 September 2021). "Buckingham Group employees to receive £1,000 after ownership switch". constructionmanagement.co.uk.
  4. ↑ "Buckingham Group Contracting Ltd". stadia-magazine.com. Retrieved 29 June 2024.
  5. ↑ Morby, Aaron (13 October 2016). "Buckingham Group starts £120m Filton business park". constructionenquirer.com.
  6. ↑ GARNER-PURKIS, ZAK (17 July 2018). "Buckingham lands £20m Luton Airport job". constructionnews.co.uk.
  7. ↑ "Buckingham Group signed for Chipping Warden bypass". theconstructionindex.co.uk. 18 June 2019.
  8. ↑ Withers, Iain (2 June 2011). "Buckingham Group completes hat-trick of sporting venues". building.co.uk.
  9. ↑ "Midlands firm bucks gloom by doubling its turnover". building.co.uk. 7 January 2011. Retrieved 7 January 2013.
  10. ↑ Gerrard, Neil (7 October 2019). "Buckingham starts new Oval cricket stand build". constructionmanagement.co.uk.
  11. ↑ "Buckingham sues on stalled stadium project". theconstructionindex.co.uk. 20 October 2015.
  12. ↑ "Stadiums blamed for Buckingham failure". theconstructionindex.co.uk. 17 August 2023.
  13. ↑ Bascombe, Chris (17 August 2023). "Construction company building new Liverpool and Fulham stands files for administration". Telegraph. Retrieved 5 September 2023.
  14. ↑ Weinfass, Ian (13 September 2019). "Buckingham Group turnover hits record level". constructionnews.co.uk.
  15. ↑ Morby, Aaron (10 March 2014). "Carillion Buckingham JV wins £87m Chiltern rail link". constructionenquirer.com.
  16. ↑ Bickerdike, Graeme (3 March 2016). "Farnworth Tunnel – Once in a lifetime". railengineer.co.uk.
  17. ↑ "Axial works with Buckingham Group on Wigan to Bolton electrification project". axialprojects.com. Retrieved 29 June 2024.
  18. ↑ "Buckingham wins £55m Tyne and Wear Metro contract". pbctoday.co.uk. 17 May 2021.
  19. ↑ "The Widnes Runcorn Railway Bridge refurbishment, Liverpool". Institute of Civil Engineers. 2 August 2018.
  20. ↑ "Collapse of Buckingham Group casts shadow over UK rail sector". railfreight.com. 21 August 2023.
  21. ↑ Milne, Andy (7 November 2017). "Constructing Blackburn's new train depot". railengineer.co.uk.
  22. ↑ Kelly, Megan (6 June 2019). "Buckingham wins major contracts on £82m Coventry station". constructionnews.co.uk.
  23. ↑ PRICE, DAVID (24 June 2020). "Buckingham Group: HS2 pivot can fuel COVID-proof growth". constructionnews.co.uk.
  24. ↑ BANKS, CHARLOTTE; ING, WILL (4 September 2023). "Kier buys Buckingham rail division for £9.6m". constructionnews.co.uk.
  25. ↑ Rogers, Dave (4 September 2023). "Buckingham break-up begins as Kier snaps up £150m rail business". building.co.uk.
  26. ↑ Price, David (6 September 2021). "Buckingham Group becomes largest employee-owned contractor". constructionnews.co.uk.
  27. ↑ Hunter, Andy (17 August 2023). "Firm building Liverpool's Anfield Road stand files for administration". Guardian. Retrieved 5 September 2023.
  28. ↑ "Buckingham Group construction company on brink of collapse". BBC News. 17 August 2023. Retrieved 5 September 2023.
  29. 1 2 "Mace replaces Buckingham on Blues stadium". The Construction Index. 12 September 2023. Retrieved 12 September 2023.
  30. ↑ Holland, Daniel (22 August 2023). "Whitley Bay Metro station renovation plans in jeopardy as contractor The Buckingham Group ceases trading". Northumberland Gazette. Retrieved 29 November 2023.
  31. ↑ Rogers, Dave (4 April 2024). "Buckingham collapse delays DLR job by months, TfL confirms". Building. Retrieved 4 April 2024.
  32. ↑ Prior, Grant (3 June 2024). "Third contractor to finally finish £135m Swansea job". Construction Enquirer. Retrieved 4 June 2024.
  33. 1 2 Aaron, Morby (4 September 2023). "Kier swoops as Buckingham Group enters administration". Construction Enquirer. Retrieved 5 September 2023.
  34. ↑ Prior, Grant (8 September 2023). "Liverpool bring on sub for Buckingham on Anfield stand". Construction Enquirer. Retrieved 8 September 2023.
  35. ↑ Morby, Aaron (3 October 2023). "Willmott Dixon replaces Buckingham on Swansea job". Construction Enquirer. Retrieved 3 October 2023.
  36. ↑ Prior, Grant (13 September 2023). "Subcontractors fear Buckingham debts could top £100m". Construction Enquirer. Retrieved 13 September 2023.
  37. 1 2 Morby, Aaron (29 September 2023). "Buckingham Group supply chain hit for over £108m". Construction Enquirer. Retrieved 29 September 2023.
  38. ↑ Rogers, Dave (25 January 2024). "Amount owed to Buckingham's supply chain jumps to £113m". Building. Retrieved 25 January 2024.
  39. ↑ Morby, Aaron (11 April 2024). "Buckingham Group supply chain hit doubles to £256m". Construction Enquirer. Retrieved 11 April 2024.
  40. ↑ Prior, Grant (7 October 2024). "Buckingham supply chain hit soars above £300m". Construction Enquirer. Retrieved 9 October 2024.
  41. ↑ Prior, Grant (19 September 2023). "Buckingham Plant Hire still trading as normal". Construction Enquirer. Retrieved 19 September 2023.
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