Contractual disputes, late payment and retentions led to firm鈥檚 demise
Trade firms are chasing 拢16m in unpaid bills after the collapse of Warrington-based Daniel Contractors, an initial report by administrator Deloitte reveals.
Daniel 鈥� which specialised in water and utilities contracts and reported revenue of 拢117.4m in 2011 and pre-tax profit of 拢1.3m 鈥� entered into administration on 13 May.
The report reveals the firm owes 拢27m to unsecured creditors, with trade creditors accounting for 拢16m. Contractual disputes, late payment and retention issues led to the firm鈥檚 demise.
However the majority of the jobs were saved. In total 1,226 out of 1,449 jobs were saved 鈥� 328 working on a United Utilities contract transferred to Enterprise, 225 working on a Bristol Water contract moved to May Gurney, 471 staff working for Welsh Water transferred to an undisclosed firm and 185 staff from subsidiary Land & Marine joined Murphy Group.
Daniel started to encounter cash flow problems in 2012, due to contractual disputes, project and payment delays and the late or non-payment of retentions.
The firm also made a significant IT investment in its utility business, which backfired when the division was hit by low margins and the cancellation of a contract.
Daniel began seeking a buyer or new investment in early 2013 but its main lender, PNC Financial Services, contacted Deloitte about a potential administration soon afterwards, after Daniel began having problems paying creditors.
Deloitte will hold a creditors meeting on 23 July.
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