Dunne collapsed owing £30m to trade creditors

Aaron Morby 8 years ago
Share

Dunne’s main concrete frame operation collapsed owing more than £30m to both trade contractors and associated companies.

Dunne's main concrete framework firm and plant business owe nearly £15m to unsecured trade creditors
Dunne's main concrete framework firm and plant business owe nearly £15m to unsecured trade creditors

Also it has emerged that Keltbray paid £8.5m for Dunne’s Bathgate head office and plant in a deal concluded four weeks after the firm collapsed laying off 574 staff.

Insolvency specialist FRP Advisory detailed the level of debt across all six businesses placed in administration in a report to creditors.

At the two key businesses – Dunne Building and Civil Engineering and CLR Plant Hire – trade creditors and suppliers are nearly £15m out of pocket.

Dunne Building and Civil Engineering owes a further £13.8m to associated group companies.

Property and plant held by the two companies and parent group were secured from administrators by Keltbray nearly four weeks later.

This deal prompted the demolition contractor to set up a concrete frame business with Gordon Dunne taking a 20% stake and the role of managing director.

Keltbray deal

  • £3m for property at Bathgate, owned by Dunne Developments (Prior book value £4.45m)
  • £1.45m for CLR plant  (book value £1.7m)
  • £3.9m Dunne Building and Civil Engineering plant (book value £11.6m)

The administrator’s report reveals that turnover at the main concrete frame business rocketed in the last four years from £37m in 2013 to £94m forecasted for this year.

But the firm ran into cash flow problems after taking a £4.5m hit in 2015 on two loss-making contracts .

Cash flow pressure came to a head early in 2016. Dunne’s biggest main contractor client Multiplex was then persuaded to release £5m in accelerated payments to keep the firm going on its jobs.

But postponement of ongoing work of one of Dunne’s Multiplex contracts tipped the firm into a crisis in June, forcing the director to seek significant extra facilities with Dunne’s bank Santander.

But talks ended in deadlock forcing the directors to request the bank call in administrators on 19 July.

FRP Advisory has estimated the amount due to creditors and have requested detail information from Dunne’s directors to compile a more accurate evaluation of sums due. Several subcontractors contacting the Enquirer claim they are owed significantly more than has been initially estimated.

Key creditors Dunne Building and Civil Engineering

Associated Dunne Group creditors

  • CLR plant hire: £7.8m
  • Dunne Concrete Flooring: £100,000
  • The Dunne Group: £3.56m
  • Dunne (BCE): £2.33m

Unsecured trade creditors

  • Express Reinforcements: £2.67m
  • Tarmac Trading: £1.2m
  • Peri: £668,000
  • McGill & Co: £338,000 – contractor
  • Sterling Lloyd Construction: £312,000
  • FES Support Services: £271,000
  • Evencast (Kent): £244,000
  • LBC UK: £206,000 – contractor
  • Ischebeck Titan: £203,000
  • Taylor Maxwell: £160,000
  • Wolsley: £136,000
  • C J O’Shea Plant Hire: £133,000
  • Doka UK Formwork: £119,000
  • Hanson Quarry Products: £117,000
  • M&S Engineering: £112,000
  • Cemex UK: £110,000

Latest news

Precast firm FP McCann cleared after immigration raid

Home Office takes no action after public raid on construction site
47 mins ago

25 groundworks firms win £100m Places for People deal

M&J Evans, Carmac and Churngold Construction feature housing association's line-up
51 mins ago

Energy efficiency firms angry at lack of CITB support

SME contractors funding bid "does not meet the current criteria for supporting productivity or EDI"
59 mins ago

£400m South Cambridge science park approved

Outline approval allows former sewage treatment works to be demolished
47 mins ago

McLaren gets green light for 45-storey Leeds tower

Landmark Wellington Square scheme will see 464 flats built with 360,000 sq ft of offices
3 days ago

Heavy rain causes 1.9% construction output fall

Hopes remain undampened of a resi-led recovery this summer
3 days ago

Taziker restruture to return to profitability after £1.2m loss

Founders bought the business back from private equity after last year's loss
3 days ago

£220m London wharf homes scheme approved

285 homes to be built beside protected Albert and Swedish Wharves in Wandsworth
3 days ago

Major project veteran named civils director for Sizewell C

David Speight previously worked on Hinkley, Heathrow and HS2 client teams
3 days ago

Morgan Sindall lands £19m Milton Keynes hospital job

Crane lifts to be carefully co-ordinated to ensure air ambulance remains active
4 days ago

Clancy bolsters civils leadership team

Daniel Tonkin and Simon Hyams join as operation directors of water and infrastructure
4 days ago

Balfour names new project boss for HS2’s super-hub station

Steve O’Sullivan replaces Nigel Russell who was promoted to CEO of Balfour's HS2 ops
4 days ago

Buckingham Group supply chain hit doubles to £256m

Total owed to unsecured creditors soars as surety providers finalise claims
4 days ago

Builders demand an end to police plant bans

Call to suspend all embargoes on moving mobile cranes and large site kit
4 days ago

Green light for £65m Blackpool multiversity campus

Education campus of 350,000 sq ft will be delivered in phases
4 days ago

Vinci signs £138m Sheffield steel forge expansion deal

Sheffield Forgemasters signs landmark contract after two years of pre-construction works
5 days ago

McAlpine hires HS2 programme boss to head defence arm

Armed forces logistics expert Mike Hickson takes role as MD of defence
5 days ago

£200m carbon capture plan for Deeside site

Energy from waste operator enfinium looking to invest in North Wales plant
4 days ago

McAleer & Rushe promotes five staff to contracts directors

Design and build contractor targets £500m revenue next year
5 days ago

Consultant quartet win Government estate upgrade deal

Government Property Agency selects Arcadis, Tetra Tech, AtkinsRéalis and McBains
5 days ago

Resi towers pioneer to transform Liverpool site

Beetham founder Hugh Frost to help develop 1,200 new homes
6 days ago

Construction Manager of the Year crowned

Galliford Try's Barry Kingscote wins coveted prize: Full list of winners
5 days ago

Landsec £250m London terraced office job approved

Skanska tipped for 20-storey Hill House scheme near Fleet Street
5 days ago

Lendlease tops March contracts league

BAM and ISG rank third with big contract wins
5 days ago

Vistry strikes deal with Homes England for 1,000 units

Firm's timber frames factory will supply most of the Midlands houses
5 days ago

Morgan Sindall go-ahead to build 23-storey Salford resi job

Funding deal with CBRE allows latest project on bank of River Irwell to proceed
6 days ago

Unite Students gains planning for London and Bristol schemes

RG Group will build landmark Stratford tower and Freestone Island projects
6 days ago

Rolls-Royce gets go-ahead for 1.1m sq ft expansion in Derby

Major expansion of Raynesway campus planned to met submarine fleet orders
6 days ago

GMI Construction edges back into profit

A year of controlled consolidation helped generate £0.9m profit but cash at bank dropped to £10m
6 days ago

Balfour gets final sign-off for HMP Highland at £209m

Deal struck for delayed Inverness prison after costs rocket
7 days ago

Contractor services