Shaylor Group suffered sudden collapse despite 'progressive year' for business
Construction firm Shaylor suffered a sudden and dramatic collapse, it has emerged, after the most recent company accounts hailed a "progressive year" for the business.
The Aldridge-based firm has ceased trading after entering administration this week, with the loss of 200 jobs. The company has been working on the revamp of Wolverhampton's Civic Hall and other large projects.
Its demise has left dozens of sub-contractors and suppliers thousands of pounds out of pocket. Multiple businesses have claimed payments started to get further apart or dry up completely earlier this year.
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Shaylor posted a profit of more than £6 million for the second year running in its 2018 accounts which were only published in March. The documents don't appear to provide any indication of the impending crisis which would hit the company. Turnover remained roughly the same as the previous year.
Chief executive Stephen Shaylor also said the performance during the year had put the company "in the very low risk category".
Administrator FRP Advisory said Shaylor "experienced severe cashflow pressures in recent weeks following several project delays".
A section headed '2018 review' said: "The year to September 30, 2018 was another progressive year for the business as we made continued progress against our business plan - building on the momentum and foundations laid during the previous years.
"In the period, both revenues and operating profit were stable on the previous year with robust levels of liquidity at year end. Our credit rating scores with the likes of Experian continue to be strong, placing us in the very low risk category.
"In line with corporate strategy, our selective approach to new business continues to place us on an upward trajectory as we continue on our path of planned and managed growth.
"Looking forward, revenue visibility healthy which will provide the platform for the continuation of the main themes of our business plan."
The accounts also said Shaylor planned to deliver more than 100 projects as part of a Department for Work and Pensions rollout programme.
Wolverhampton Council is now searching for a new contractor to complete the £38m renovation of the Civic Hall. It is already scheduled to be closed until 2021. It is not clear yet how much the collapse of Shaylor will delay the scheme.
As well as the Civic Hall, the firm was also working on a new sports museum at the Silverstone racetrack and the 15-storey Emporium student tower in Birmingham.
