New Heights Construction, a prominent construction company operating in the South West, has recently experienced a devastating financial collapse, leaving more than £4 million in debts owed to over 200 creditors in Devon and Cornwall. With offices in Bodmin and Plymouth, the family-run business was established in 2012 and had been highly regarded for its ability to rescue major building projects that had been abandoned by other companies.
One notable example of their success was the completion of the £13 million Teesra House apartment block in Plymouth after another construction firm, Henry W Pollard and Sons Ltd, went into administration in 2021. However, New Heights Construction’s own fortunes took a dramatic turn for the worse when it called a creditors’ meeting earlier this month and subsequently appointed liquidators last week.
According to official documents filed at Companies House, the company’s assets, including freehold land, properties valued at £1.6 million, and £1.8 million in cash, are estimated to be worth around £3.74 million. While this may provide some relief to creditors, it still falls short of the total amount owed. Unsecured creditors are expected to face losses of nearly £1 million.
The available funds will primarily be allocated toward paying wage arrears and holiday pay for 34 workers, totaling £48,827, as well as addressing a preferential claim from tax authorities amounting to £279,158. However, an additional 35 workers have made claims totaling £232,722, placing them in the category of unsecured creditors. There are also numerous other claims from various companies, amounting to a substantial £4.18 million.
Highlighted among the larger claims are £427,260 from Champion Groundworks Ltd in Liskeard, £321,354 from EHV Structures Ltd in Torquay, and £101,257 owed to Ocean Recruitment Solutions Ltd in Plymouth. Additionally, there are over 200 smaller claims, including £55,000 from Bradfords Building Supplies in Plymouth’s Newnham Industrial Estate and £90,133 owed to DA Giles Ltd in Helston.
Although the liquidators have the ability to realize certain assets, such as approximately £2.7 million from work in progress and another £1.7 million owed to the company, the total shortfall for creditors is still estimated to be a staggering £999,590. Consequently, it is unlikely that creditors will receive the entirety of what they are owed.
Prior to appointing liquidators, New Heights Construction publicly disclosed that its financial position necessitated the “difficult decision” to cease trading as of October 30. Over the years, the company had been involved in diverse projects encompassing the private, commercial, retail, defense, and healthcare sectors, where it provided expertise in planning, financial management, and problem-solving.
Q: What is the total amount of debt owed by New Heights Construction?
A: New Heights Construction has left over £4 million in debts to more than 200 creditors in Devon and Cornwall.
Q: Will the available assets cover the debts?
A: While the company’s assets are estimated to be worth £3.74 million, unsecured creditors are still projected to experience a shortfall of close to £1 million.
Q: Which projects did New Heights Construction work on?
A: New Heights Construction was involved in various projects, including the completion of the Teesra House apartment block in Plymouth and the construction of B&M stores in Bodmin and Wadebridge, among others.
Q: Who are some of the largest creditors?
A: Among the significant creditors are Champion Groundworks Ltd in Liskeard with a claim of £427,260, EHV Structures Ltd in Torquay with a claim of £321,354, and Ocean Recruitment Solutions Ltd in Plymouth with a claim of £101,257.