好色先生TV

A partnerships housing business formed two years ago from subsidiaries of contractor Rydon is set to go into administration, with all staff to be made redundant.

The founder of Real Group, experienced former Wates housing boss Paul Nicholls, has filed notices of intention to appoint administrators for the group鈥檚 two regional subsidiaries, Real LSE and Real SW.

Real Group, created in 2021 from the South-east and South-west divisions of Rydon Construction, reported turnover of 拢56.9m in its accounts to February 2022, and has won work from the likes of Southern Housing Group, A2Dominion, Spelthorne Council and Cornerstone since being set up.

Nicholls told 好色先生TV鈥檚 sister title Housing Today both regional subsidiaries are now 鈥渓ikely to go into administration鈥� and that 鈥渁ll staff have been made redundant to mitigate creditor loss鈥� but added he was unable to provide any further detail at the current time.

The most recent accounts of the group holding company, Real Places Ltd, show that almost 90 people were employed by the firm, which boasted at the time a secured pipeline of 拢73m of work for the year ahead, plus a further 拢129m of work for later years.

However, the accounts also showed the firm reporting a 拢3.7m pre-tax loss in the year and a similar-sized deficit on the balance sheet. In comments to the accounts, the firm said that it was then in a 鈥済ood position for growth鈥� but that 鈥渁 combination of exceptional costs, delayed starts, extensive inflations and covid related supply chain issues following the relaxation of restrictions impacted on the group鈥檚 financial performance鈥�.

It said this had particularly impacted upon the business in the South-west.

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Nicholls, who bought the Real businesses from Rydon after working for six year at Wates following more than a decade at United House, had set an ambition to grow Real to a 拢300m a-year turnover partnerships housebuilder within five years.

Nicholls is reported to have told staff of the redundancy decision in an email yesterday in which he said that 鈥渨ider market conditions have got the better of us鈥� pointing to rising inflation and project delays.