Logistics specialist went under in February with the loss of 160 jobs
Essex contractor Readie Construction collapsed into administration owing 拢34m with the largest trade creditor owed just over 拢3m.
Begbies Traynor was appointed in February with the majority of the firm鈥檚 160 staff made redundant.
In an update filed at Companies House, the administrator said subcontractors were owed nearly 拢19m with other trade creditors owed a further 拢6m. HMRC is owed 拢8m while staff are owed 拢1.2m.
Four subcontractors are each owed 拢1m or more with the largest, a structural steelwork firm, owed 拢3m.
The logistics and warehousing specialist鈥檚 collapse once again shone the spotlight on the problem of the industry鈥檚 wafer-thin margins.
In its latest published accounts, filed at Companies House last October, Readie reported a turnover of 拢421m in the year to March 2023, a rise of 22%.
>> See also: 鈥楾he industry is broken.鈥� The soul-searching begins as London M&E specialist succumbs to familiar foes
>> See also: ISG鈥檚 new chief executive has a point: doing the same thing over and over again can鈥檛 go on
But pre-tax profit nosedived two-thirds to 拢1.7m, although its cash balance at the year-end improved by 拢1.2m to 拢12.3m.
The fall in profit meant the Romford-based firm鈥檚 pre-tax profit margin was shredded to just 0.4% from 1.6% last time which itself was down on the 1.7% it posted the year before, when it became an employee ownership trust.
Readie said 2023鈥檚 profit was hit by several challenges including supply chain failures and the higher cost of bringing in replacements, the impact of inflation and jobs being competitively tendered, rather than negotiated.
No comments yet