Subbies unlikely to recover amounts owed to them

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Dozens of M&E firm are counting the cost of Carillion鈥檚 implosion with many owed an average of close to 拢250,000 each.

Businesses with less than 10 staff are owed on average 拢98,000 鈥 with one owed 拢250,000 鈥 while firms with between 10 and 49 employees owed 拢141,000 on average.

A survey carried out by the 好色先生TV Engineering Services Association (BESA) and electrical trade body ECA said one small business was owed 拢800,000.

And those firms with between 50 and 249 staff are owed an average 拢236,000, with one firm on the hook for 拢1.4m.

The survey said 80 firms are owed 拢75m 鈥 although this figure includes the 拢45m hit Balfour Beatty is facing primarily for its work on the Aberdeen bypass where Carillion was one of three contractors carrying out work.

BESA president Tim Hopkinson said: 鈥淭hese figures give us a clearer picture of just how hard our sector is going to hit in terms of the thousands of pounds of unsecured debt that will be lost by ordinary hard working small businesses, jeopardising their future and the future of their staff.鈥

Last week Carillion鈥檚 liquidator PwC said any work carried out for Carillion on private jobs would be treated as 鈥榰nsecured debt鈥 and placed at the back of the queue behind other creditors.

The hit subbies are facing

  • The total value of ongoing contracts with Carillion is worth 拢47.2m, which are now at risk
  • Micro businesses (less than 10 employees) are owed on average 拢98,000. One of these SMEs is owed over 拢250,000
  • Small firms (10-49 employees) are owed 拢141,000 on average. One of these contractors is owed 拢800,000 by Carillion
  • Medium-sized businesses (50 鈥 249 employees) are owed on average 拢236,000. One of these firms is owed almost 拢1.4m
  • Large businesses (250 employees +) are owed on average 拢15.6m. This figure includes Balfour Beatty鈥檚 widely reported 拢45m loss from joint ventures with Carillion