Update: Daniel Contractors have had a winding up petition advertised yesterday. This will mean the bank account will be frozen.
A report in the Sunday Times said that Daniel Contractors, and engineering business based in Warrington, with a workforce of 1,300 was likely to go into administration. The firm would neither confirm nor deny the rumours. Deloittes were names as the likely administrator. A spokesperson for construction credit rating agency Top Service said the firm had been on its radar for a while “due to increasing number of adverse reports from our customers and the mounting County Court Judgements (CCJs)”. However the total value of the CCJs amounts to £111k but the most recent was lodged on the 8th May.
This could just be a temporary cashflow problem which they can trade out of, but if it is not, the most likely next step is a notice of intention to appoint administrators. This will protect the company against any further legal actions against the company but they will have a maximum of 20 days, assuming one extension is allowed, before administrators will need to be appointed.
Daniel Contractors are involved in laying large pipelines and the hire of plant and equipment - The main sector they work in is Oil and Gas.
Like many large engineering firms it suffered in the recession and lost some £100m in sales, margins have been squeezed but added to this its Chief Executive also died not long ago.
Recent accounts show that the firm made £117.4 million in revenues, with pre-tax profits of £1.3 million for 2011.