Details revealed in Companies House records filed by Fairhurst Ward Abbotts鈥� administrator
Fairhurst Ward Abbotts 鈥� known as the Queen鈥檚 builder thanks to it holding a royal warrant 鈥� entered into administration in July owing an estimated 拢20m to creditors.
The firm鈥檚 administrator Begbies Traynor said in a statement of proposals filed at Companies House at the weekend that the 拢20m figure incorporates an estimated 拢5m to cover expected counterclaims over incomplete and terminated contracts. Unsecured trade creditor claims are estimated to amount to 拢13.4m.
Fairhurst Ward Abbotts鈥� (FWA) financial difficulties stemmed from its 鈥渋nability to pay debts鈥�, Begbies Traynor鈥檚 report states. This situation followed the discovery by new finance director Derek Aslett in late 2014 of what were considered to be 鈥減oor鈥� accountancy practices, according to the report.
Prior to this, the administrator said, the company had expected to make a profit for the year to August 2014, but a review by Aslett saw this changed to a loss of 拢1.6m reported in the finalised accounts. This was attributed in the firm鈥檚 2014 accounts to 鈥渁 number of loss making contracts鈥� and investment in the company鈥檚 infrastructure.
By the end of June 2015 the specialist conservation and restoration contractor - which worked on numerous historic buildings including Windsor Castle (pictured) - needed an 鈥渋mmediate cash injection,鈥� and potential investors were lined up.
However, on 29 June the firm was served with a winding up petition for 拢225,000, meaning additional monies were required. This impacted on investor meetings, which ultimately proved unfruitful, Begbies Traynor said.
The statement of proposals also reported that FWA鈥檚 solicitors, DWF LLP, are 鈥渉andling a potential large claim on behalf of the company against an offshore SPV [Special Purpose Vehicle] with assets in the UK鈥�. The claim could yield a six or seven figure payout to FWA, if successful, the administrators said.
It is believed that FWA鈥檚 combined order book value amounted to 拢9.1m. The statement of proposals cautioned that the estimated outcomes for creditors were illustrative at this stage and should not be relied upon as guidance as to the actual outcome.
A spokesperson for Begbies Traynor said: 鈥淸FWA] continue to assist creditors with their claims and processing of trade credit forms, reservation of title issues and they are continuing to implement their asset realisation strategy.鈥�
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