黑洞社区

The Queen鈥檚 stonemason went into administration owing over 拢3.2m because of accountancy errors, papers filed at Companies House have revealed.

Cathedral Works Organisation (CWO), which has previously worked on Windsor Castle and Buckingham Palace, entered administration last month.

In the administrator鈥檚 report, filed at Companies House by accountancy firm IRL, joint administrator Ken Touhey said the Chichester-based firm had 鈥渕aterially overvalued鈥� its work in progress in previous accounts.

He said the overvaluation - which was identified in the summer of 2013 - meant its 鈥減rofits were overstated for prior years鈥�.

He added: 鈥淎s a result of the above findings, a deteriorating financial position and cash flow pressures, the directors sought an injection of working capital from independent parties in order to continue.鈥�

In January, CWO鈥檚 directors identified that further cash funding was not available and sought to sell the company but talks fell apart in February and administrators were appointed soon after.

The report showed that the firm owed creditors 拢3.2m when it went into administration. It owed 拢58,400 to preferential creditors, mainly employees, which the administrators estimated would be paid in full.

CWO owed a further 拢3.18m to unsecured creditors who the administrators predicted would receive a 鈥渟mall distribution鈥� from the settlement.

The list of unsecured creditors included Cemex (拢3,468), HSS Hire Services (拢11,504) and Rokill Ltd (拢55,250).