LVX Global Group goes into administration, 25 jobs at risk

On Wednesday morning, five companies under the banner of LVX Global Group appointed administrators to drastically turn their fortunes around.

LVX is an infrastructure engineering business that offers strategy, engineering and project management in the building sector with its main offices in Adelaide.

The engineering company claims on its website to have a presence in more than 20 companies across the world.

Major nationwide projects the company has worked on include Brisbane Airport and Sydney’s Botanical Gardens, and has also worked with the Sunshine Coast Council on lighting, communications and electrical services for its Mooloolaba seafront.

LVX continues to trade while administrators seek an urgent buyer for either the entire business or some of its assets.

The fate of 25 employees hangs in the balance.

It’s a pretty significant fall from grace with news reports last year indicate the infrastructure business was thinking of launching itself on the stock exchange in an initial public offering, with an estimated value of $30 million.

Ken Whittingham and Mark Robinson of insolvency firm Fort Restructuring have been appointed as administrators.

In a statement to news.com.au, they said LVX has several national projects underway but “no final decisions” have been made about whether to stop work on them.

The administrators said they were looking to sell LVX as a “going concern”.

They are also open to a deed of company arrangement, or DOCA, being put forward, which is where a portion of the debt is paid back and control is returned to the original company directors.

“Under either scenario we expect that most employees’ jobs will be preserved, and the businesses will continue to trade,” the administrators said.

In July last year, it was reported that LVX was looking to raise up to $5 million in a pre-IPO capital raising.

The raising scheme put the company’s value at the time at around $30 million.

The company generated $13.3 million in revenue in the 2022 financial year, up from $7 million in the previous comparable period.

It had a forecasted revenue of $15 million for the 2023 financial year, according to an internal presentation last year reported on in the media.

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LVX is the latest national company affiliated with the construction sector to go broke in recent months in a growing industry-wide crisis.

Earlier this year, news.com.au reported that a number of national construction companies have entered into administration.

That included Rork Projects, which operated across NSW, the ACT, Victoria and Queensland, with debts of nearly $30 million.

Two weeks ago, Project Coordination, which had been in business for 50 years, also appointed administrators. It operated across NSW and the ACT.

alex.turner-cohen@news.com.au