R&W Civil Engineering to file for administration

A civils contractor in the south of England looks set to file for administration – and yet a new buyer could still come to its rescue, it said.   

R&W Civil Engineering Limited filed a ‘notice of intention to appoint an administrator’ with the Companies Court on Thursday 13 July 2023. 

However, the company said it is in “very advanced talks” about the procurement of the businesses by an external party.

And while it said it is currently unable to say who the new owners are likely to be, it is a “very positive step” for its employees, clients, and supply chain.

Consultants Sandra Mundy and Paul Davies of business advisory firm, James Cowper Kreston, have provisionally been proposed as joint administrators, court files suggest. 

James Cowper Kreston was approached for comment. 

Construction Wave also approached law firm Charles Russell Speechlys for comment, which it believes R&W has retained as legal counsel.  

R&W has been operating across the south of England since 1981. 

It provides a range of civil engineering, environmental and plant services to both public and private clients, with specialist expertise in highways maintenance.   

Accounts for a R&W Civil Engineering Limited, headquartered in Southampton, made up to 31 March 2022, report turnover of £31.8 million (FY2021 £34.6 million). 

For the same period, it reported an operating profit of £895,000 (FY2021 £996,000).  

The drop in turnover was mainly due to “secured work being delayed following the impact of the Covid-19 pandemic which has caused issues mobilising new contracts from new and existing frameworks”.  

Its gross profit margin also took a hit due to “uncontrollable resource inflation felt across all elements of the construction supply chain”.  

An R&W Civil Engineering spokesperson said: “R&W Civil Engineering Ltd are in very advanced talks regarding the procurement of the businesses by an external party. We are currently unable to announce who the new owners are likely to be, however we are working hard to enable the agreement to be completed as soon as possible. 

“We believe this to be a very positive step for our employees, clients, and our supply chain, as the purchase ensures our operations can continue with additional support. The potential purchaser is an excellent fit for us operationally and culturally, with their people at the centre of everything they do, combined with their ethos of working collaboratively with their customers and supply chain.”