D & D (Civil & Construction) Limited (03706958): administration
- Status
- Administration ended
- Administration began
- 2011-04-15
- Administrators' firm
- Begbies Traynor
- Incorporated
- 1999-02-03
- Location
- Preston
- Industry
- 4521
Why it went into administration
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Credit insurance / supplier credit withdrawn
- Weather / natural events
From the administrators' statement
D & D (Cwil & Construction) Limited ("the Company’) was incorporated on 3 February 1999 The Company had recently worked solely for Balfour Beatty Utility Limited (‘BBUL”) who Issued contracts on an annual basis every Apnl These contracts were issued to cover works executed by the Company on behalf of the National Gnd’s Gas Distribution Alliance
The Company had always traded profitably with the accounts up to March 2010 detailing a profit of £310,000 However due to the poor weather and frozen conditions the last two winters have proved difficult, putting a strain on the Company's cash flow Over last winter the Company was carrying out works in Preston, Lancaster and Bumley, areas which suffered particularly badly with ice and snow The effect was twofold, delaying works being completed and damaging works already undertaken Under the terms of the contract the Company was required to remedy any defects for work completed at the contracted price These additional works increased the Company's overheads with no extra income for the business In December 2010, the Company discussed ceasing works as It was not cost effective to continue working on the current terms, the Company was expenencing cash flow difficulties and had fallen into arrears with its payments to creditors Following negotiations with BBUL, they agreed to pay the Company ona weekly basis until the end of the contract to assist with the cash flow issues
In March 2011, the Company's accountants Moore & Smalley contacted Begbies Traynor at the request of the Director to arrange a meeting Following our discussions, it was clear that the Company was facing creditor pressure and the threat of winding up proceedings from a number of creditors In addition, BBUL had advised the Company that it would be changing the terms on future contracts BBUL would supply all its own plant, machinery and vehicles and would require labour only on a sub-contractor basis from 1 Apn! 2011 onwards
Administrators' statement of proposals (2011-06-16) · Companies House register