St Hilliers Construction Enters Voluntary Administration, Pauses Works on Multiple Sites

St Hilliers Contracting, a prominent construction company in Australia, has made the decision to enter voluntary administration, adding to the ongoing challenges faced by the beleaguered construction industry. As a result, Glenn Livingstone and Alan Walker from WLP Restructuring have been appointed as administrators for seven entities within St Hilliers’ construction division, while St Hilliers Property, the property development and investment arm, remains unaffected.

Upon the appointment of the administrators, all construction works across St Hilliers’ 21 active sites have been paused. Additionally, approximately one-fifth of the company’s workforce has been made redundant, with 22 employees unfortunately losing their jobs. WLP Restructuring has stated that they will undertake an urgent assessment of the business’s financial position and operations during this time.

The administrators are working closely with stakeholders and staff to expedite the recommencement of project works at the earliest opportunity. They express optimism that construction activities can resume later this week, with hopes of preserving as many jobs as possible.

This decision comes after St Hilliers suffered losses exceeding $10 million over the past two financial years, as reported by ASIC. It is currently too early to determine the extent of the company’s outstanding liabilities to creditors, according to a spokesperson.

The Australian construction industry has faced significant difficulties throughout the previous year, with supply chain disruptions, rising interest rates, escalating costs, and labor shortages impacting projects. Despite these challenges, Australia continues to face a pressing need for increased housing supply. To address this issue, the federal government has set an ambitious target of building 1.2 million homes within five years from July, aiming to alleviate the rental crisis.

St Hilliers Contracting’s entry into voluntary administration adds to the current struggles within the construction sector, highlighting the broader challenges faced by the industry in Australia.