Pic: The Bolton News
ICSM Business News: as the economy shrinks and property prices fall so the fortunes of construction firms take a dip as more companies go to the wall
By Harry Mottram: Across the UK building projects have begun to stall as more firms either pause work or go under as the cold economic winds of recession chill the industry to the bone. One of the most reliable indicators of the health of the industry is the Purchasing Managers’ Index which charts what is being spent – and the levels of expenditure are down according to market analysis this year. This year the number of insolvent construction firms has risen by more than 20% with 100% rise last year.
It has left thousands of suppliers, contractors and the taxman out of pocket. When URBN Construction in Plymouth went down earlier this year they owed £345,687 with the suppliers unlikely to get a penny and even HMRC is unlikely to get anything much despite being a preferential creditor. ICSM’s Ian Carrotte said every time a major firm goes bust it is a double whammy on the economy as not only does the firm renege on its debts it causes others to suffer a loss meaning investment from those affected is hit.
One of the main issues created when a firm goes under is the cost of administration. NMCN appointed Grant Thornton to handle their collapse and have seen fees reach almost £3 million. The construction firm has 3,000 unsecured creditors owed around £115 Million mounds. It has been reported that Grant Thornton ran up a bill of over £7 million when they handled the affairs of the collapsed retailer Debenhams. If the economy is in recession – one sector that clearly isn’t in trouble is that of firms that take over the administration of insolvent companies.
Some recent casualties include these:
ARCHITECTURE & BUILDING LTD 11475558
ARCHER & CHARLTON CONSTRUCTION LTD 11848807
BASL BUILDING AND MAINTENANCE LIMITED 08070071
BBR CONSTRUCTION LIMITED 11343822
BILLERICAY BUILDING (ESSEX) LTD 11511111
BIRCH BROTHERS (KIDDERMINSTER) LIMITED 01480871
CUSTOM MADE CONSTRUCTION COTSWOLDS LTD 10659223
D & M BARTHORPE LIMITED 07215799
GCO INTERNATIONAL LTD 11780528
GENSON BUILDING SERVICES LIMITED 08610745
HOLLIANNA INTERIORS DESIGN LTD 10134609
KMF CONSTRUCTION LIMITED 12075058
NORTON WINDOWS AND ROOFS LIMITED 13168576
ODYSSEY CONSTRUCTION SERVICES LIMITED 11694311
POWER CONSTRUCTION LIMITED 13349990
SENILGA CONSTRUCTION LIMITED 09722792
TOORLEY LIMITED 11711320
COUTURE CONSTRUCTION (NORFOLK) LTD 11633858
HIGH SPEC INTERIORS LIMITED 07248872
JAMIE HUNT CONSTRUCTION LIMITED 06546912
J H BUILDING & CARPENTRY LIMITED 10046878
JVH BUILDING SERVICES LTD 09505886
KMR CONSTRUCTION LIMITED 09216800
OSTIN CONSTRUCTION LTD 11652179
PLASTICS IN CONSTRUCTION LIMITED 05056012
SIK ELECTRICAL LTD 06179961
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ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.com. Ian.carrotte@icsmcredit.com
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For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.
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For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk