Buckingham Group headed for a likely end

A prominent construction company has halted its operations, attributing the decision to "rapidly increasing contract losses."

2 mins read

A prominent construction company has halted its operations, attributing the decision to “rapidly increasing contract losses.” Buckingham Group, headquartered in Buckinghamshire, has been engaged in ambitious projects such as the redevelopment of football stadiums, including Anfield in Liverpool and Sixfields in Northampton. The company has also played a role in essential earthworks for major rail projects like HS2 and East-West Rail.

Although Buckingham Group has filed a notice to potentially appoint administrators, it has underscored that it is not currently in administration. The firm, which operates under employee ownership, achieved a turnover of £665 million in 2021. Despite demonstrating “strong commercial performance across most of the business,” the company faced significant challenges, incurring substantial losses and interim cash shortfalls on multiple key contracts, notably involving stadiums, arenas, and earthworks in Coventry.

The predicament is attributed to a convergence of factors, including “severe inflation linked to the Ukraine conflict” and other difficulties within the Sports and Leisure division. The company had been actively pursuing additional investment over recent months but had been unable to secure it.

Buckingham Group has expressed its commitment to collaborate with clients in order to devise solutions and achieve the best possible outcome for creditors. Among its high-profile undertakings was the 7,000-seat expansion project at Anfield, scheduled for completion during the 2023-24 season. Liverpool FC has assured that the situation will not disrupt the upcoming match against Bournemouth and that the phased opening of the redeveloped Anfield Road stand will proceed as planned.

In response to the situation, Northampton Town FC, which had enlisted Buckingham Group to construct the new East Stand, has adopted a cautious approach. The club is “monitoring the situation” and awaiting updated cost estimates. Kelvin Thomas, Chairman of Northampton Town FC, emphasised that the club has no financial liabilities in this regard and had initiated conversations with alternative contractors as part of their contingency planning.

Thomas added that Buckingham Group has been a positive contributor to the football club and expressed hope for a resolution that enables the company to overcome its challenges.