A roofing firm which was awarded a multi-million pound contract to repair thousands of homes in Yorkshire has collapsed.

Avonside Roofing is part of Avonside Group, which has gone into administration. In 2020, the company was reportedly awarded a £33.5 million contract by Sheffield City Council to repair and renew the roofs on approximately 30,000 homes over five years.

The council has issued an update after being asked what this means for residents who are waiting for repairs to their roofs or are living in properties where work is already underway.

Janet Sharpe, Sheffield Council’s director of housing and neighbourhood services, said: “One of our roofing contractors, Avonside Roofing, has gone into administration and our priority now is to make sure residents who have been promised work will see that work completed.

Avonside Roofing, which had a multi-million pound contract to repair thousands of homes in Sheffield, has gone into administration (file photo)

“Any half-finished work will be checked to make sure is it safe and good until another contractor is appointed. Completed work will be guaranteed and leaseholders who are paying for their work will not be double-charged.

“If any residents have an issue to raise, they can do this by contacting us on 0114 2930000.

“We appreciate that this is a worrying time for residents, and we are doing everything we can to mitigate against any risks. We will continue to keep all residents affected by this situation up-to-date.”

Begbies Traynor said in a statement that Kirstie Provan and Gary Shankland had been appointed as joint administrators of the UK’s largest roofing contractor, which provides specialist roofing, energy and plumbing services to the housebuilding industry, on September 7.

“The Group experienced a period of disrupted trading during the pandemic which, alongside margin squeeze, the impact of underperforming divisions and financial reporting issues, resulted in a requirement for extended working capital facilities,” it said.

“Despite extensive efforts from the management team, shareholders and advisors, the Group has been unable to secure the necessary funding from existing stakeholders, or third parties, to effect the required turnaround and enable continuation of trade in the current form.”

Begbies Traynor added that the joint administrators had been able to secure the future of nine Avonside Roofing branches, preserving 79 jobs, after they were sold.

Avonside Energy has also been bought, by the private investor Rcapital, which it said had saved another 100 jobs.

Update issued after collapse of Avonside Roofing - which was given £33.5m contract to repair homes