Reigate-headquartered developer and builder Geoffrey Osborne Limited has filed a notice of its intention to appoint an administrator.
The Surrey contractor lodged an application with the Companies Court this week. London law firm Macfarlanes appears to be acting as a ‘representative’ of the business.
The company faced “significant headwinds” over the past two years, including high inflation, the lingering impacts of the pandemic and Brexit, and a slowdown in public sector procurement.
Osborne sold its property management division, infrastructure business and offsite manufacturing arm and reinvested the proceeds of all three sales into its construction business.
However, residual losses on legacy projects have undermined performance which has impacted its ability to win new work.
The business has also struggled to secure the necessary investment to continue as a going concern, it said.
It added negotiations that include selling aspects of the business “are ongoing”.
All staff will be paid up to the date the administrators are appointed, the company said.
Osborne was founded in 1966 in Chichester by civil engineer Geoffrey Osborne and its principal shareholders are still the Osborne family.
Andrew Osborne became chairman of the group in 2012 having joined the company in 1998.
Latest available accounts for the year to 30 September 2021 show the company delivered turnover of £325.8 million, generating a pre-tax profit of £2 million.
Chairman Andrew Osborne said: “Everyone in the construction industry knows the challenges of the past few years and Osborne has worked hard to continue to deliver projects.
“Our management team has done everything possible to look after our people and protect suppliers, while seeking to trade through the economic headwinds.
“While today’s decision to move towards administration is a last resort, it is now the right thing to do while we continue to seek external investment.
“Osborne has built and maintained £10 billion of the nation’s infrastructure during 58 years of trading, working on homes, schools, hospitals, universities, retail and more.
“None of it would have been possible without our people, customers and supply chain. I thank each and every one of them.”
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