Every business is different, however there are particular issues that construction businesses face which are unique to the sector.
Often with low margins and tough trading conditions, cash flow can be a problem. Below is a list of problems we’ve seen happen in the industry:
It might be that an additional loan is not what is required…. As turnaround practitioners, our specialists can help tackle these issues with you to get your construction business back on track. We can go through all the available options, like expert assessment of the issues your company faces, improved financial reporting, Time to Pay deals, CVAs and pre-pack administrations. We can also find finance for construction companies in distress.
We also have industry specific turnaround experts who can act as non executive directors, chairman or turnaround managers. We have turned around construction companies from £500k to £25m sales.
Call us on 0800 9700539 for free expert advice and a talk through your options. We can visit you onsite to discuss your specific situation.
Written ByKeith Steven
Turnaround Director
Keith is the Turnaround Director of RMT Accountants & Business Advisors. Prior to being acquired by RMT his company KSA Group has undertaken more than 300 CVA led rescues. Read our case studies to see how.
HMRC VAT Security Deposits for Struggling Companies
We have received a letter from HMRC and they have demanded a security deposit. What does that mean?
Read
Company Bankruptcy Advice
The content on this page has been written by Robert Moore and approved by Chris Ferguson Licensed Insolvency Practitioner and Managing Director of RMT KSA
ReadUniMetals To Go Into Liquidation According To Reports
According to Reports by Sky News Unimetals is likely to go into liquidation tomorrow following repeated attempts to save the company. The company had filed a couple of Notice of Intention To Appoint Administrators at court as a way to give it some breathing space. The recycling company is an important element of the Steel supply chain and this has got the government worried.650 jobs are likely to be lost in any liquidation.This is a breaking story....
Read
Is My Company Insolvent? The 3 Legal Tests & Director Duties
There are 3 tests to check to see if a company or business is insolvent. The cashflow test, balance sheet test and the legal action test.
Read
Northumberland Firm Merit Goes Into Administration
Update 19th NovemberOffsite construction specialist Merit has ceased trading after entering administration, resulting in the loss of most of its 340 jobs.James Lumb and Will Wright of Interpath were appointed as joint administrators to Merit Health Limited and Merit Holdings Limited on 17th and 18th November respectively. The Northumberland Gazette has reported that A Cramlington-based construction company has taken action to “protect the position of the business” after a winding-up petition from HM Revenue and Customs (HMRC).Merit Group Services Limited has filed a Notice of Intention to Appoint Administrators, saying the petition caused project delays and “significant additional pressure” on cashflow, though it remains “confident that a solution to this difficult situation can be found.”The company heads a group of 16, including Merit Holdings, which is working with Northumbria Healthcare NHS Foundation Trust on the £35m Berwick Community Hospital and a medicines manufacturing unit at Seaton Delaval. Some of the hospital units have been built at Merit’s Cramlington site and transported to Berwick for installation.A Merit spokesperson said: “The recent filing of a winding up petition against Merit Group Services resulted in certain customer projects experiencing delays, which in turn has placed significant additional pressure on the group’s cashflow.“We have therefore taken the decision to file a Notice of Intention to Appoint Administrators in order to protect the position of the business while we explore options. We remain confident that a solution to this difficult situation can be found.”HMRC has not disclosed its reasons for the petition, saying such action is only taken “once we’ve exhausted all other options.”A trust spokesperson said: “Northumbria Healthcare has been made aware that Merit has filed a notice of intention to appoint an administrator. This is a very unfortunate situation and we appreciate that this will be a very difficult time for all involved.“The trust is continuing to work in partnership with the organisation and its advisers, and has adhered to the contractual agreements in place.“We have robust plans in place to ensure construction work continues to progress both the Berwick Community Hospital and Medicines Manufacturing Centre at Seaton Delaval.“We remain focused on delivering both projects as planned and are in on-going dialogue with all relevant parties to ensure continuity and minimise any potential disruption.”Construction businesses have the highest insolvency rates in part due to the "lumpy" nature of their income, complex contracts and unforseen construction problems.See how RMT KSA has saved construction companies using our innovative turnaround techniques. We also have an office in Berwick!
Read