Swanage: Administrators sell off construction firm's assets

D&P Lovell Limited, based in Swanage, went into administration in November owing £3.572m, including £2.37m to around 135 unsecured creditors. 

Joint administrators Mark Boughey and Michael Field, of Mazars LLP, have been repaying various businesses and banks back through the sale of the business's assets. 

As reported, just £22 was left in D&P Lovell’s bank when they were brought in. 

Its headquarters in Prospect Business Park, Swanage was sold by the administrators on April 30 for £702k plus VAT. 

The firm is based in Swanage (Image: Daily Echo)

Upon completion, the bank Metro was repaid £462,445.

Meanwhile, two flats and two maisonettes which were in the early stages of being built in Victoria Avenue, Swanage were being advertised for sale in excess of £2m. 

The site was eventually sold on April 5 by the administrators for £835k, settling all £805k worth of debt with the loan provider BIG Property Finance. 

BIG Property Finance, based in Birmingham, was owed £673,592 at the administrators' appointment, but interest and charges continued to accrue. 

• Read more: D&P Lovell goes into administration after CEO's health issues

Various other assets – including plant and machinery, office furniture and IT equipment and vehicles – were all valued at £31k. 

But they were sold for £16k more than valued, “significantly exceeding” the valuation and estimated potential recoveries, the administrators said. 

However, the administrators have said it is not likely the work will be completed on D&P Lovell before the expiration period on November 15 and so an extension to the administration is necessary.  

On repaying the £2.37m to unsecured creditors, the administrators said: “Assuming that outstanding assets are realised in full and expenses and creditors’ claims are as anticipated, it is hoped that funds will be available to allow a dividend to be paid to creditors, and after allowing for the prior claims of the company’s preferential and secondary preferential creditors. 

“The level of any dividend in the creditors’ voluntary liquidation itself will be dependent upon the costs pf the creditors’ voluntary liquidation, once they are known, and the final level of agreed unsecured creditors’ claim.” 

The administrator's report said D&P Lovell’s chief executive had been suffering “health issues and has been incapacitated since September 2023”.  

Since then, the company “effectively ceased to trade” as a result of Mr Lovell’s absence.