# PMC Civil Engineering Limited (07409362)

> Why UK company 07409362 went into administration, from the administrators' statement filed at Companies House, by companydig. Interactive version: https://companydig.co.uk/company/07409362

- **Status:** Administration ended
- **Administration began:** 2019-05-17
- **Incorporated:** 2010-10-15
- **Location:** Fareham
- **Industry:** 42990 Construction of other civil engineering projects n.e.c.

## Why it went into administration

- Loss of a key customer, supplier or contract
- Competition / price pressure
- Cash flow / liquidity pressure
- Over-expansion / investment not recovered

## From the administrators' statement

1.1. The company has operated as a civil engineering contractor since 2010 and traded from Merley House, Wimborne, Dorset. The company's current directors are Mr Michael Page and Mr Paul Cummings, both of whom are 50% shareholders. Mr Page joined the company in February 2015 and his role was to win new work and develop the business. At the time of Mr Page joining the company, he also agreed to invest funds to support trading and growth. Mr Cummings has been a director since inception and his role was to manage the contracts and sites on a day to day basis.

1.2. The business traded well for a number of years with turnover over the last four years almost doubling year on year from an initial £1.1million to £8.3million. The rapid growth in turnover brought its own challenges with the need to recruit additional staff and employ additional subcontractors. This resulted in inefficiencies and challenges in managing the sites and contacts which led to a reduction in the quality of the work that was being produced. Whifst turnover had increased, the gross profit margin had substantially reduced.

1.3. This poor workmanship meant the company, on numerous occasions, had to redo work at its own cost and as a resuit lost significant sums where clients reduced payments against poor quality workmanship or the costs to rectify the defects could not be charged. Whilst it is not unusual across the industry for poor workmanship, especially on sites where there is time pressure for work to be completed, it became clear that the standard of the work had fallen below that of competitors. Furthermore, the company lost a number of tenders or opportunities to tender for contracts due to the industry becoming aware of the poor quality of work and competitors using this to their advantage when competing against the company.

Statement of proposals: https://find-and-update.company-information.service.gov.uk/company/07409362/filing-history/MzIzOTY0NjgyMmFkaXF6a2N4/document?format=pdf&download=0
Companies House register: https://find-and-update.company-information.service.gov.uk/company/07409362

Contains public sector information from Companies House, licensed under the Open Government Licence v3.0.