£421m-turnover construction firm falls into administration
Thu, 08 Feb 2024 | ADMINISTRATION
Essex-based construction contractor Readie Construction Limited has fallen into administration and ceased trading. The firm’s collapse has been attributed to many of the issues affecting the wider construction industry, including inflation and the failure of subcontractors.
Constantinos Pedhiou and Gary Shankland, both of Begbies Traynor, were appointed as Joint Administrators of Readie Construction Limited on February 6. Upon their appointment, the business immediately ceased trading and the administrators will now begin winding down its operations.
In a statement, Begbies Traynor said: "Creditors of the Company are asked to contact Begbies Traynor on readie@btguk.com to register a claim. Having just been appointed, we are assessing the situation and further updates will be made as and when it is appropriate.”
The company, a specialist in construction for the logistics and warehousing spaces, has seen rapid growth over recent years, particularly in the wake of the COVID-19 pandemic. In the year ending March 31 2023, its turnover was up by more than 22 per cent from the previous year, rising to £421.1 million, compared to £345 million a year earlier.
However, this period also seemed to coincide with the company being hit by the numerous headwinds impacting the construction sector more broadly. Despite its growing turnover, the company’s pre-tax profits fell to £1.7 million in 2023, down more than threefold from £5.5 million a year earlier.
In an email to staff that was quoted in industry publication Construction News, Readie Construction Management stated that the company had faced inflationary cost pressures, the failure of numerous subcontractors and “chronic tightening in the performance bond and trade credit insurance markets”.
According to the email, this put considerable strain on the business and, despite efforts to secure external financing and investment, the company was not able to find a viable solution, ultimately leading to it falling into administration.
As of March 31 2023, the company’s fixed assets were valued at just under £357,000 and current assets at £71.8 million. At the time, its total equity amounted to £1.8 million.
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