DGT Structures Limited (06629011): administration
- Status
- Administration ended
- Administration began
- 2014-02-21
- Formerly
- WB Newco 26 Limited
- Incorporated
- 2008-06-24
- Location
- Norwich
- Industry
- 41201 Construction of commercial buildings
Why it went into administration
- HMRC / tax arrears
- Creditor pressure / legal action
- Loss-making contracts / project overruns
- Property / lease costs
- Competition / price pressure
- Rising costs / inflation
- Bad debts / customer insolvency
- Management failings / irregularities
From the administrators' statement
The Company was incorporated on 24 June 2008 as a fully integrated building contractor specialising tn the design, manufacture, fabrication, supply and erection of structural steelwork, roofing, cladding and integrated facades It purchased the business and assets of DGT Steel and Cladding Limited on 7 October 2008 from its administrators The purchase price of £2 4 million was funded by a combination of an equity investment of £500,000 and interest bearing loans of £1 9 million It traded from Atlas Works, Norwich Road, Lenwade, Norfolk and it employed approximately 119 people
The accounts to 30 September 2009 showed turnover of £13 million, a post tax profit of £600,000 and surplus shareholder funds of £11 million In the year ended 30 September 2010 turnover increased to £15 million but the Company suffered a loss after tax of £1 5 million caused by the slowdown in the construction industry and rising steel prices which hit margins, and bad debts Subsequently annual turnover increased to £20 million and the Company reported profits after tax of £410,000 and £89,000 in the years ended 30 September 2011 and 30 September 2012 respectively However, with hindsight the directors believe that it could be seen that these accounts were overstating profits, in particular in the 2012 accounts where disputed trade debtors totalling £18 million were not provided for when they should have been, at least in part
Administrators' statement of proposals (2014-04-10) · Companies House register