Real Contracting Group's South West Division Files for Administration

An Unexpected Turn for Real Contracting Group

The South West division of the Real Contracting Group, known as Real SW, has taken a surprising turn as it recently filed a notice of intention to appoint administrators. This follows a similar move by the London and South East division, Real LSE, last week.

Real’s Struggles Amidst Construction Boom

Real specialises in constructing new homes, student accommodation and later living schemes for housing associations, local authorities, and selected private clients. Despite the booming construction industry, as seen in ventures like London’s innovative approach to commercial design, Real appears to be grappling with significant challenges.

The Birth and Vision of Real Contracting Group

Formed in 2021 by former Wates Residential managing director Paul Nicholls, the Real Contracting Group was conceived following the acquisition of Rydon Construction’s south east and south west businesses. This acquisition included eight ongoing projects, and at its inception, Nicholls set an ambitious turnover target of £300m for the new group.

Announcement of Administration

An internal email sent by Nicholls to the staff of Real SW revealed the decision to put Real SW into Notice of Intention to appoint administrators. The news came as a shock, but the directors and Nicholls felt it was the necessary step to take.

Real SW and the Siddington Contract

Real SW was working on a £41m residential contract at Siddington Park near Cirencester. The contract has been novated to Rydon, who will see the project through to completion.

Financial Status of Real SW

Latest accounts for Real SW indicate that the firm had a turnover of £28m for the year ending on February 28 2022, but it also reported a pre-tax loss of £1.3m.

The Future of Real Contracting Group

With the appointment of administrators, the future of Real Contracting Group remains uncertain. The impact on ongoing projects and potential repercussions for clients and employees are yet to be fully understood.