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UK: Concerns grow over Midas’s future amid administration notice

UK: Concerns grow over Midas’s future amid administration notice
UK: Concerns grow over Midas’s future amid administration notice

Midas Group Ltd, UK’s biggest construction firm, has raised concerns over its construction projects in South West England after it reportedly announced its intention to appoint an administrator.

The company, along with its subsidiaries Mi-Space (UK) Ltd and Midas Construction Ltd, is involved in various construction schemes in the region, with key projects in Plymouth, Bristol, Cornwall, Torbay, and Somerset.

These projects are related to residential and commercial developments for both public and private sector clients and are in different stages of completion. However, after Midas filed a notice of intention (NOI) to appoint an administrator, the future of these projects has become doubtful.

While Midas is ranked as the 9th largest private sector firm in the region, having a reported turnover of £291,267,008 ($393,054,633) with 498 employees, recently rumors have been circulating that the company was facing financial issues after having announced a £2 million ($2.7 million) loss last year.

Midas Construction had ceased working on Torbay Council’s Premier Inn Scheme in January this year, while the hotel was initially expected to be completed around late 2022, with many other projects in the area coming to a standstill as well. These projects include a STEM center, school extension, student accommodation, care home, engineering center, along with various housing and office building projects. 

The firm has stressed that it is still in operation and committed to reaching an outcome that ensures continuity of its live contracts to reassure stakeholders, and has asked for their support to continue through this period.

However, if the firm goes into administration, which can happen in a matter of days, construction projects will be affected, and if the company stops trading or goes into liquidation, other firms will have to be brought in to complete them.

Tim Jones, Chairman of South Business Council, has questioned South West's ability and capacity to be tasked with the completion of these many key schemes, adding that the council is entitled to be concerned over the delivery of those outstanding projects as they are crucial for growth in the region.

Source credit: https://www.devonlive.com/news/devon-news/midas-south-west-projects-worth-6579731

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