黑洞社区

The row between Banner Holdings and Colchester council over Rafael Vi帽oly鈥檚 拢26m visual arts centre contributed to a 57% fall in turnover and a 拢2.8m loss in 2008.

It was the most high-profile of four problem jobs at Banner, the others being a commercial scheme in Sheffield, a private care home deal in Nottingham and a row over contract extension payments on a job for Winchester and Eastleigh NHS Trust. As a result of the disputes, turnover fell from 拢23.9m to 拢10.3m.

Banner and Colchester council have been in a row over the arts centre since the end of 2007, when a string of disputes began over technical issues, including the design of the guttering. According to Peter Elston, chief executive, the disagreement cost the company up to 拢4m in 2008. In its accounts, Banner said it had submitted 鈥渁 sizeable claim鈥�, which is believed to be in the millions, for money it says it is still owed.

The biggest impact on the firm鈥檚 top-line was from the Nottingham scheme, which was abandoned after the first phase owing to the recession, and deprived the company of 拢10m.

The 拢3.5m Sheffield scheme had the biggest impact on the bottom line and cost the company 拢2.7m in profit after the client, Steenburg Property, went into administration. The job was also plagued by rows about time extensions and additional costs. 鈥淲e were quite miffed about the way the client treated us, to put it mildly,鈥� said Elston.

Despite the difficult year, which left Banner with net debt of 拢359,381 compared with its positive cash balance of 拢1.8m in 2007, Elston said the company was not in financial danger and that most of its jobs were successful. 鈥淲e are like a Weeble; we鈥檝e taken a big punch but we鈥檝e got back up,鈥� he said.

He added that the firm would make a profit of about 拢123,000 on turnover of about 拢12.3m in 2009.