ReSolve completes Xylotek sale to Carpenter Oak Build

ReSolve has completed the sale of Xylotek to Carpenter Oak Build following the appointment of Simon Jagger and Ben Woodthorpe, partners, as joint administrators on 31 July 2024.

Xylotek offered comprehensive services for the construction of high-quality advanced timber structures, ranging from conception and design to construction, fitting, and maintenance.

The company’s team comprises experts in architecture and timber design engineering, with extensive experience in timber construction.

In 2022, the company achieved considerable success from various projects, including the ABBA Voyage arena in London, winning industry awards and subsequently doubling its turnover in 2023.

However, this rapid growth led to working capital challenges which had “knock-on effects” in performance. Despite obtaining further funding and the development and implementation of a restructuring of the business, the company continued to struggle to maintain growth and meet targets. These problems were exacerbated by the insolvency of Xylotek’s main subcontractor.

Xylotek engaged ReSolve’s Turnaround and Debt Advisory Team led by Andrew Pepper in February 2024 to advise on cash flow and cost management as well as conduct a marketing process to seek investment.

ReSolve worked closely with the management team whilst negotiating with prospective investors to secure a solvent investment deal. At the eleventh hour, the prospective party confirmed they would not be progressing a solvent deal.

The ReSolve team then worked rapidly to negotiate a pre-packaged sale with an independent purchaser. Jagger and Woodthorpe were duly appointed as joint administrators on 31 July and completed the sale to Carpenter Oak Build on the same date.

Carpenter Oak was founded in 1987 and pioneered the building of new structures developed from understanding of traditional green oak construction techniques gained through the renovation of historic buildings.

Jagger, partner at ReSolve, said: “Xylotek operates in an important niche in UK construction which, like many other businesses, suffered from too-rapid expansion and the economic shocks of the past few years. We are pleased therefore to have obtained a sale, which preserves the Company’s unique offer.”

Luke Copley-Wilkins, managing director at Carpenter Oak Build, added: “Xylotek has a unique proposition, serving an important gap in the UK construction market. Many leading architects, engineers and clients want to build from wood to decarbonise the built environment and for aesthetic reasons, but prior to Xylotek there was a noticeable lack of suitable expertise in the supply chain. Xylotek filled that gap, and we are pleased that we will be able to preserve that skill and expertise to enhance our offer to customers.”