Building firm in administration - and blaming RBS

dopester

BenL wrote: »

Roads, bridges, railways? Government funded projects?

A few it seems.
http://www.wrekin.co.uk/news/news.aspx

johnycoldears

BenL wrote: »

Roads, bridges, railways? Government funded projects?

Yes ,mainly Government or Local Authority funded work - In fact the £50 million we heard about yesterday, which probably won't make the news is £10 million a year for the next 5 years for the Highways Agency

dopester

It is tough out there.

Whilst the new owners seem to have addressed the "expand at all costs" strategy - even with orders to work with, it seems margins have been getting tighter since at least a year back, due to competition (lower prices).

A bit down the line, will there be loads of juicy council/defence contracts to tender for, as I'm expecting spending to be really cut back and slashed. Cold I know.

http://www.contractjournal.com/Articles/2008/03/20/58257/wrekin-construction-back-in-profit-at-17m.html

johnycoldears

dopester wrote: »

A few it seems.
http://www.wrekin.co.uk/news/news.aspx

How on earth did you get access to our web site ?. When I try direct it tells me that the site is down.

dopester

johnycoldears wrote: »

How on earth did you get access to our web site ?. When I try direct it tells me that the site is down.

Same here at first, but it was just the main page that has been barred. Can access through the other links. (Contact - The Company - Solutions) ect
http://www.google.co.uk/search?hl=en&q=wrekin&btnG=Google+Search&meta=

1984ReturnsForReal_2

johnycoldears wrote: »

Very galling.

Mandelson was aware of the situation and failed to exert any pressure on RBS.

Whilst I understand that it is upto RBS who they choose to support at the end of the day I have a feeling that this will turn out to be quite embarassing for them.

Madelson has other interests.

johnycoldears

johnycoldears wrote: »

Yes ,mainly Government or Local Authority funded work - In fact the £50 million we heard about yesterday, which probably won't make the news is £10 million a year for the next 5 years for the Highways Agency

Looks like I was wrong - at least the Birmingham Post is picking up the real forward order book value.

http://www.birminghampost.net/birmingham-business/birmingham-business-news/other-uk-business/2009/03/11/wrekin-construction-in-administration-as-rbs-pulls-funding-support-65233-23114119

bo_drinker

If they were house builders you could understand the bank not wanting to supply funds but large civils it seems crazy ?? Is someone at RBS not clued up ??

thriftybabe

johnycoldears wrote: »

I am (was?) a quantity surveyor for Wrekin.

Not much to add really other than our forward order book which was £40 million just got increased to £90 million yesterday. Looks like it's too late now and we're going down.

Real shame as Wrekin were a good company suffering cash flow problems and being squeezed by RBS on one hand and by reduced credit insurance from suppliers on the other.

I ought to just clarify that we didn't build houses, our core business was civils (roads and bridges) and some rail works.

Thats a real shame especially as you had orders on your books. Sadly I have heard this all too often recently. Good luck to you and your fellow workers.

dopester

I'm not sure it's as simple as pointing at the "value" of £multi-million pound contracts, and woo-hoo-ing that it is all the bankers fault.

Seems a lot more complicated to me. If RBS is being so unfair, why couldn't the company find other backers, or switch banking facilities to another group who would see them as a solid long term return for their money?

From an article this time last year, in which the squeeze was already being showing signs of being felt by Wrekin.

Turnover of £60m in the nine months to 31 December 2007 (a move to bring the year-end back to normal) generated a pre-tax profit of £1.7m.

In the previous 12 months Wrekin suffered a loss of £9m on turnover of £100m.

http://www.contractjournal.com/Articles/2008/03/20/58257/wrekin-construction-back-in-profit-at-17m.html