260-year-old York conservation firm hits cash flow crisis and appeals to creditors

A York-based construction and heritage restoration company is seeking financial help from its creditors to continue trading.

William Anelay Ltd, which has been in business since 1747, ran into cash flow difficulties following a period of expansion with projects outside its usual sphere which proved “financially and operationally difficult.”

The £38m turnover firm is now proposing a company voluntary arrangement (CVA) with creditors to allow it to keep trading.

Headed by chairman and special projects director, Charles Anelay, the eighth generation of the founding family, the company currently has 190 staff, including in associated businesses Lowery Roofing, Hare and Ransome Joinery, Anelay Traditional Masonry and Anelay Building and Conservation, which are unaffected and will continue to trade as normal.

Under a CVA, businesses pay creditors a certain agreed percentage in the pound to stay in business, avoid administration and, in William Anelay’s case, the potential loss of traditional craft skills.

William Anelay Ltd is being advised by Newtons Solicitors, Knaresborough, and accountants and insolvency specialists, RMT, Newcastle, which has written to creditors proposing the CVA as a way forward.

William Anelay has a secured workload of £33m and £9m worth of projects under consideration in the current financial year and an additional £12m of work already secured for 2017-18.

Bankers to the company, which currently has 17 schemes on site, support the CVA proposition and it will become binding on all those involved if creditors representing more than 75% of the outstanding debt vote to agree the proposal.

Charles Anelay said: “While only a few projects outside our usual sphere have been involved, the values were significant and this has harmed our business performance and cash flow.

“They are now finished, save one, where completion is imminent and another, which has been brought under control, but unfortunately we are now unable to pay suppliers.

“We have a fresh approach, have returned to our core operations and have a strong order book for the next 12 months and beyond.

“We appreciate that the need for a CVA will be a great disappointment to sub contractors and suppliers who have supported us for many years but this is the best way to make a maximum and prompt return to creditors and we are totally committed to making it a success. Of course, it can work only if our customers are prepared to support the proposal as well.

“With our bank’s support and a successful completion of the proposed debt restructuring, we aim to continue in our current form and are committed to completing schemes under contract.”

William Anelay Ltd’s recent projects have included Lambeth Palace and Wilton’s Music Hall, London; Roker Pier Lighthouse; Phase 2 of Wakefield Cathedral, and Wentworth Castle and Stainborough Park Restoration, Barnsley.