Historic firm seeks deal with creditors to ease cash crisis

William Anelay, which is based York, has been in business since 1747, and specialises in the restoration of historic and listed buildings.

The construction and heritage restoration company said difficulties arose after a period of expansion with projects “outside its usual sphere” which proved financially and operationally difficult.

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

The company has 190 staff, including those employed in the 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 and the insolvency specialists, RMT, Newcastle, which has written to creditors proposing the CVA as a way forward.

A spokesman said: “William Anelay is usually profitable and now 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 support the CVA proposition and it will become binding on all those involved if creditors representing more than 75 per cent of the outstanding debt vote to agree the proposal.

The company has 17 schemes on site, including projects at York Mansion House, Bradford City Hall and Lancaster Castle.

Charles Anelay, the chairman and special projects director, is a direct descendant of the company’s founder.

Mr 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 has focused on maintaining traditional craft skills, such as stone masonry, brick working, joinery and hard metal roofing, through apprenticeships. It carries out work nationally.

Its 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 in Barnsley.