02.06.2023

UK tower cranes standing idle

It seems that tower cranes working on a number of London sites are standing idle due to financial difficulties facing a large UK based contractor. According to information we have received from several suppliers, as many as 31 installed cranes may be affected.
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The cranes are all located on sites operated by Henry Construction Projects which has faced several winding up orders this year, but petitions date back as far as November 2021. Up until now they have been dismissed, or more recently withdrawn at the last minute. The latest one was filed on Wednesday, May 31st, while another company told us that its credit insurance has also been withdrawn. Information held by credit agencies indicates late and non-payment has been a regular strategy since at least 2021.

One tower crane rental company has confirmed to us that it has shut down 12 of its cranes on the Henry sites and stopped providing support and services to several others, including units owned by the contractor.

The company’s latest accounts to June 2021 show strong growth over the past few years, with revenues of £402.2 million, a pre-tax profit of £13.98 million and a relatively strong balance sheet, including more than £61 million in cash.

The contractor’s main tower crane supplier, told us that his company has a good portion of its debt with the company insured, but has raised additional funds in order to cover any eventuality.

We have contacted the company and its chief executive for comment, but so far have net received a response.

UPDATE
Henry was placed into administration on June 15th - we understand that some of the cranes will be sold off to the highest bidder.