1,600 jobs saved as new companies swoop on NMCN collapse

By Olimpia Zagnat

Almost 1,600 jobs have been saved after the collapse of NMCN, one of Nottinghamshire's biggest firms.

The good news comes after the Huthwaite-based contractor went into administration just a few days ago.

However two companies have now moved in to buy divisions of the failed contractor, Business Live reports.

SVELLA, which buys controlling interests in underperforming businesses, has bought the telecoms, plant hire, transport and accommodation business divisions of NMCN, securing almost 700 jobs.

Galliford Try has bought its water business, including Lintott, for £1 million, protecting around 900 jobs.

It is thought around 80 jobs in the building division have been lost.

NMCN had been in the process of building a 522 student bedroom complex in Traffic Street, Nottingham.

It was also working on a controversial major roadwork scheme around Liverpool Lime Street station – a significant gateway into the city.

The business had revenues of more than £400 million according to its most recent accounts in 2019.

But Grant Thornton were appointed as administrators on October 4 as NMCN plc failed to sign off its 2020 accounts or re-finance the business.

The new direction comes after Trent Bridge Quays – a luxury development of apartments and townhouses on the river Trent in Nottingham – brought in Leicester-registered Bode Contracting Ltd to replace NMCN, which had been working on the scheme.

SVELLA was launched last year by a team including former Stobart Group chief executive Andrew Tinkler.

The acquisition will enable the telecoms division to continue servicing customer contracts, including telecoms infrastructure services for BT, Virgin Media and CityFibre.

Acquisition of the plant hire, transport and accommodation businesses, which include a fleet of plant, machinery, vehicles, mobile offices and welfare units, will allow SVELLA to ensure the telecoms business has access to the assets it needs to successfully trade.

SVELLA said the deal provides it with a platform to exploit the growth potential of the telecoms business in an expanding sector.

Mr Tinkler, who is the SVELLA chairman, said: “The acquisition of the telecoms, plant, transport and accommodation business divisions by SVELLA safeguards over 680 important skilled roles and secures continuity of service for key national telecoms infrastructure clients.

“NMCN was one of the UK’s fastest-growing telecoms contractors and was actively supporting the government’s ambitions for nationwide coverage of ultrafast fibre broadband through a number of significant infrastructure contracts and frameworks.

“We aim to continue to deliver on these ambitions.

“These business divisions have growth potential and we will work closely with management teams to develop a comprehensive strategic plan and provide the support and investment to deliver operational excellence, enhance their customer proposition and facilitate growth.”

Galliford Try said its deal would see it take on the NMCN water business and its senior management team, who will report to Steve Slessor, MD of Galliford Try’s environment business.

In 2019 the NCMN water business generated operating profit of £7.6 million on turnover of £282.6 million. Its gross assets were £70 million.

Galliford Try chief executive Bill Hocking said: “I am delighted to welcome the employees, clients and suppliers of NMCN Water to Galliford Try.

“This acquisition will accelerate the growth of our successful environment business, providing work with new clients and increased capabilities.

“This is a very exciting time as we deliver our sustainable growth strategy and I look forward to a bright future for our collective team.”

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