Sat, 23 Feb 2013 | ADMINISTRATION
Two construction firms in Glasgow have entered administration due to ongoing difficulties with cash flow.
William Crawford and Son and J&T Blacksmiths were both put into administration this week, with Begbies Traynor appointed to handle the administration of the group.
William Crawford and Son is a fully-owned subsidiary of J&T Blacksmiths. Collectively, the group has an annual turnover of £5.2 million but both businesses have struggled to overcome a slowdown in their markets.
Paul Dounis, who has been appointed as joint administrator, commented: “We are continuing to trade the business and continue to provide an ongoing service to existing customers that include major contractors.
“A quick sale will be needed to enable the businesses to continue to win future contracts and maintain sales revenues.”
He added that “unresolvable cash shortfalls”, partly due to a slowdown in the markets, that has put too much pressure on the businesses. But for now, the administrator remained hopeful of finding a solution to the group's current predicament: “We are unable to make any guarantees regarding how long jobs will remain viable until we secure a buyer for the firms, but we are making every effort to secure a return for the creditors and secure a future for the businesses and their staff.”
J&T Blacksmiths was established in 1979 and supplies steel works to major contractors and utility companies. It works closely with William Crawford and Son to handle repair, construction and maintenance contract.
Things must have taken quite a turn for the worse since J&T Blacksmiths last filed its accounts. The latest available information for the group shows that the business's turnover increased in the year to 31 March 2011 in comparison with the previous 12 month period, rising 11.19 per cent from £10.76 million to £11.96 million, while pre-tax profit was also up a substantial 91.59 per cent, although it remained in negative territory at -£71,273.
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