Stricken retail contractor pursues claim against SME engineer

Construction generic

Stricken retail contractor Longcross Construction is pursuing a 拢1.3m claim against SME engineer Gary Gabriel Associates (GGA), according to documents filed at Companies House.

According to a statement of affairs document filed at Companies House by Longcross Construction鈥檚 directors, the firm - which entered administration in June - has filed a 鈥渃laim of 拢1.3m鈥 against Sevenoaks-based GGA.

Lee Manning, a joint administrator for Longcross Construction at Deloitte, confirmed there was a dispute between the firm and GGA, adding that this began prior to the firm entering administration and 鈥渋s in relation to work that caused an extra cost to the company鈥, adding 鈥渢he arguments are over who is liable for not picking up problems about permafrost at a site.鈥

GGA declined to comment.

Longcross Construction Ltd appointed Lee Anthony Manning and Matthew David Smith from Deloitte as Joint Administrators on 16 June 2015. . According to a statement of proposals filed by Deloitte earlier this month, Longcross Construction owes over 拢30m to creditors.

Parent company Longcross Group was also placed in administration in June. No other subsidiaries or related companies in the Longcross Group are in administration and they are still trading.

Manning said the directors of Longcross Group have expressed an interest in purchasing the group鈥檚 85% shareholding of trading subsidiaries LX Engineering (South) Ltd and LX Engineering (North) Ltd.

However, Manning said 鈥渁t this stage we are not ready to contemplate selling anything to anybody in relation to those shares because they were caught in the flak when the rest of the companies within the group fell over and therefore we want to make sure things are more stable.

鈥淭here is no need for us to sell them at this time.鈥

Manning also confirmed that Longcross Construction was 鈥渙wed several million pounds鈥 and QSs acting on behalf of the firm would be 鈥渟pending time talking to clients about the timing of and prospects of us getting paid鈥. However, unsecured creditors are unlikely to receive 鈥渁nything significant鈥 he added as there is not a 鈥渂usiness to sell per se鈥.

Longcross Construction posted a pre-tax loss of 拢1.35m in its full-year results to March 2014 on turnover of 拢190m, compared with a pre-tax profit of 拢560,000 the previous year on 拢187m turnover.

Longcross Group posted a pre-tax loss of 拢1.25m in its full-year results to March 2014 on turnover of 拢231m.