Aussie owner of M&E firm Rotary collapses

Aaron Morby 12 years ago
Share

The future of building services contractor Rotary hangs in the balance as its Australian owner Hastie Group was forced into administration.

The Australian building services giant bought Rotary for more than £100m four years ago as a springboard into the UK.

But the fast-expanding Hastie Group’s fortunes are in tatters after $20m in accounting irregularities were revealed last Friday.

A spokeswoman for Rotary said: “We are fine at the moment and trading normally. We expect a buyer will be found for the business so it just a case of waiting to see what will happen.”

The Rotary Group accounted for around 11% of Hastie Group’s A$1.8bn revenue in 2011, after a period of expansion to create a national network of offices in the UK.

Hastie employ 7,000 across its 44 companies in Australia, New Zealand, the UK, Ireland and the Middle East.

Around 2,700 people were instantly stood down in Australia.

The administrator said several potential buyers had already expressed interest in some businesses within the Hastie Group.

Ian Carson of PPB Advisory said that some of the firms were good trading businesses that would continue, but others would struggle.

He added that the move to suspend operations was “particularly disappointing”, but there was no option.

“We are obliged to confirm Hastie Group’s ability to fund trading before we can resume business,” Carson said.

“We need time to assess the details of the situation and to determine the viability of the ongoing businesses.

“In the meantime, we remain acutely aware of Hastie Group’s role on major construction projects and are assessing those urgently. We will provide an update to employees and other affected parties as soon as possible.”

Hastie Group had been in talks with banks and new investors to extend its loans last week, but they broke down when Hastie discovered an employee had allegedly falsified accounts.

The discrepancies are believed to have totalled a A$20m charge to profits this financial year.

Earlier this month Hastie admitted its earnings for the first half of the year would plummet from the anticipated A$58 million to zero.

Latest news

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
1 day ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
1 day ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
1 day ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
1 day ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
1 day ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
1 day ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
2 days ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
2 days ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
3 days ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
3 days ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
2 days ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
2 days ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
3 days ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
2 days ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
3 days ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
3 days ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
4 days ago

New scheme fuels London lab building boom

Plans in for 160,000 sq ft Whitechapel scheme near Royal London hospital
4 days ago

Contract race starts for next £155m section of A9 dualling

Prior Information Notice published for Tay Crossing to Ballinluig stretch
4 days ago

£55m Sheffield build-to-rent scheme approved

Demolition to start later this year for 158-flat Sheffield Garden project
4 days ago

London back as most expensive place to build in world

Capital leapfrogs Geneva to top costliest construction rankings
4 days ago

Gas supplier Regent to buy TClarke for £90m

£491m turnover listed building services specialist to be sold
4 days ago

Steel contractor Billington launches into bridge market

Steelwork firm hires staff from failed architectural and bridge specialist SH Structures
4 days ago

McGee employees benefit from rise in profits

Pre-tax profit doubles boosting payouts for Employee Ownership Trust
4 days ago

Lendlease veteran is latest new McAlpine director

Paul Sims joins as Operations Director after 40 years at rival contractor
5 days ago

Costain signs site labour supply deal with four firms

Contractor to use only a quartet of providers for temporary labour supply
4 days ago

BAM go-ahead for Leeds 200,000 sq ft office

Latitude Yellow will complete final plot at Doncaster Monk Bridge site
5 days ago

VolkerFitzpatrick wins £30m logistics job

Latest deal to build five distribution units for Prologis UK
5 days ago

Trio win new Scape utilities consultancy framework

Perfect Circle, AtkinsRéalis and Arcadis win places on
5 days ago

Precast firm FP McCann cleared after immigration raid

Home Office takes no action after public raid on construction site
6 days ago

Contractor services