Assessing the situation.
John Laing in administration
Published: 05 October, 2010
HERTFORDSHIRE: Housing specialist John Laing Partnership has ceased trading.
Yesterday, PricewaterhouseCoopers was appointed administrators of parent company Impala Partnership, which includes John Laing Partnership, JLP Homes and Intro Homes (Stevenage).
The company traditionally developed social housing through John Laing Partnership and in 2003 diversified into private housing through Intro Homes.
Zelf Hussain, joint administrator and director at PWC said: "The group has experienced significant cashflow difficulties due to a number of factors including the deterioration in the housing market, delayed recovery of customer retentions and a lack of significant new contracts.
"The group's board were unable to identify a viable way forward and were left with no option than to appoint administrators.
Peter Taylor, managing director of the group, said: "Following the crash in the private housing market, the fortunes of the company have been further exacerbated by the deepening crisis in the affordable housing sector.
"This has resulted in secured contracts being significantly delayed and an extremely competitive tender market relying upon zero or negative margins. Furthermore, difficulty in settling final accounts has had a major impact on cashflow.
"In order to protect the interests of all creditors, the board was faced with no alternative than to appoint administrators."
Intro Homes (Lettings) has not entered administration, and will continue to trade as normal.