Managementbuy out builder Yuill
HARTLEPOOL housebuilder Yuill Homes has been bought out by its management team for an undisclosed sum.
The company, which employs about 150 staff and has been a fixture in the region for 80 years, has been acquired by Newbridge Enterprises Ltd - a shareholding operation owned by the directors of Yuill Homes and the Bank of Scotland (Ireland) (BOSI).
Yuill said the deal was the result of comprehensive restructuring talks and would further strengthen its financial stability in a “testing” market place.
Managing director David Mullins said the company’s “long and successful” track record had put it in “the strongest position” to deal with the economic downturn, which has hit housebuilders more than most sectors.
Recently Bellway said its order book had slumped by nearly one half as it unveiled a 30% plunge in annual profits, while Barratt saw annual profits slide by a massive 68% in its latest annual results.
But Mr Mullins is looking to boost output at Yuill from 300 units per year to 450-500.
He said: “Yuill Homes is virtually a North-east institution and we are proud to be part of this next stage of development.
“For now it is very much business as usual, continuing to work with our staff, stakeholders and partners to ensure our customers receive the highest level of quality in delivering homes with a touch more imagination.”
A former civil engineer, Mr Mullins was born and bred in Hartlepool and has been with Yuill for more than 13 years.
Claire McCombe, investment director of BOSI, hailed Yuill as a “successful, well established and well managed business” with a strong track record.
She said: “We are pleased to be working with them in this venture, which enables them to continue to trade from a position of strength and ensure the sustainability of a successful company during a challenging time in the market place.”
Currently working on 12 sites across the North-east including developments in Billingham, Middlesbrough, Marske and Hartlepool, Yuill has built more than 30,000 homes since it was founded in 1927 by Cecil Yuill.
Chairman Phillip Yuill owned the business until February 2006 when he sold out to Belfast-based Taggart Holdings, which yesterday appointed administrator PricewaterhouseCoopers.
UK construction firms have struggled to cope with a severe downturn in the global housing market, with falling sales forcing many to axe jobs.
Earlier this year Darlington-based Dunelm Homes - the housebuilding arm of North-east construction operator Esh Group - announced it was shedding up to 50 jobs due to “challenging” trading conditions, declining confidence and a slowdown in housing sales. Meanwhile Persimmon, which has a base at Newton Aycliffe, has made 60 people in the region redundant.
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