The administration
Avonside Roofing was founded as Lee Roofing in 1987 and was based in Lancashire. When it entered administration in September 2022, the business employed 350 people and operated from 37 branches, according to Construction News.
Begbies Traynor administrators Kirstie Provan and Gary Shankland have now obtained their third extension. The first, granted in August 2023, added a year to the process. A second extension in September 2024 allowed a further two years.
Creditors were told about the latest extension earlier in September, before it was made public on 22 September. In an April update, the administrators had already reported that the work was taking longer than they had anticipated when appointed. They also said they had needed to undertake work that was not originally envisaged.
Disputed debts and retentions
The administrators have collected £8.9m in debts owed to nine businesses within the Avonside Group. Of that sum, £5.2m related to Avonside Roofing itself. Recovering book debts and retentions has required more of their time than expected.
Most of the debtor balances still outstanding are disputed. Provan and Shankland have instructed solicitors at Pinsent Masons to help with a continuing dispute involving the largest debtor, Construction News reported.
Contra charges and counterclaims are still being submitted. The administrators said these were changing their assessment of how much could ultimately be recovered, although collection work continued to make progress.
NatWest’s position
The group originally owed NatWest about £9.9m, making the bank one of its largest creditors. The administrators now expect a shortfall of about £8.2m, compared with their previous estimate of £8m.
Payments to the bank have so far totalled £1m. That includes £807,000 from the separate administration of Avonside Group Services. Companies House records show that Avonside Group Services was dissolved in 2024.
Employee claims and pension records
Processing claims from former employees, former landlords and subcontractors has been a particular source of additional work. The administrators said in their April update that dealing with those claims had required substantially more time than they had allowed for.
Outstanding pension contributions have also taken considerable time to address. The administrators attributed this to shortcomings in the companies’ records for the various pension schemes established for Avonside Group employees.
By April, most unpaid wages, salaries and holiday pay had been repaid. Former employees at six of the nine businesses had received a total of £327,400, meeting all their claims.
Former workers at Mid Kent Roofing had submitted claims totalling £8,400. Claims from former Tudor Roofing employees amounted to £2,200. No claims had been submitted by former Taylor Roofing employees at the time of the update.