Multi-Fab Construction Limited (03760764): administration
- Status
- Administration ended
- Administration began
- 2019-04-15
- Administrators' firm
- Aua Insolvency Risk Services
- Incorporated
- 1999-04-28
- Location
- Swindon
- Industry
- 41201 Construction of commercial buildings
Why it went into administration
- Loss-making contracts / project overruns
- Sustained trading losses
From the administrators' statement
Creditors should note that, unless otherwise stated, this section of my proposals has been prepared based on information provided to me by the directors of the Company and not from my personal
knowledge as Administrator.
The following background information was provided by the managing director, Stephen Tomlinson, regarding the Company’s history and the events leading to administration: The Company was incorporated in April 1999 to acquire and continue Steve Tomlinson’s existing steel fabrication business. The business had been successful and continued to be after incorporation, building up substantial capital reserves. However, following the recession of 2008, market conditions hardened: one regular customer discontinued its expansion policy which had previously provided several hundred thousand pounds worth of turnover annually. Contracts became iess profitable, not only due to keener negotiations on quotations but as a consequence of developers being less inclined to agree and pay additional works and retention payments. This not only impacted turnover further but undermined profitability because the Company still had to meet its own subcontract and materials liabilities incurred while undertaking these works.
Administrators' statement of proposals (2019-06-20) · Companies House register