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Brimstone

Well-Known Member
Just had a quick peek at their 2018 accounts, on a 50m turnover they made only 1m profit and it had been like that previously. - Directors forecast says it all in plain unvarnished writing, low profit margin, high risk mainly in retentions and payments on time, competition in pricing, and in my opinion, high fixed overheads. All it needed was a short-term drop in cashflow and work to push them over the edge.
Now competitors trade rates will drop and a lot of desperate people will try to get something.
 

Brimstone

Well-Known Member
Uh, huh, that's how I figure it aswell, but by the cleverness of accountants the director claims a higher percentage profit margin. I think he said 7-9 percent.
 

malc

TPF Special Forces
the story about Astins in Construction news.
the have legal problems over a contract 12 years ago, they have not been given the chance to correct the work. thus that are being sued for £7 million. on receipt of the legal letter they went into administration. they employed 200 direct staff and 800 sub contractors.
 

algeeman

It’s A Boy
the story about Astins in Construction news.
the have legal problems over a contract 12 years ago, they have not been given the chance to correct the work. thus that are being sued for £7 million. on receipt of the legal letter they went into administration. they employed 200 direct staff and 800 sub contractors.
who is the largest in the uk malc
is it stanmore
 

Brimstone

Well-Known Member
Thanks for the info Malc. Funny the Director didn't put that in the accounts as a risk. That's a lot of money for a dry lining job going wrong. Either the client really had it in for them and intentionally put them to the wall or, their lawyers didn't properly advise what was likely to happen if they pushed the legal button.

As a sole trader not a limited Co it's the one thing that bothers me. If the insurance money isn't enough I could lose everything, all savings, pension, sell the wife, cat, etc.
 
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