The collapse of M&E specialist Vaughan Engineering Ltd has left subcontractors and suppliers holding unpaid bills totalling more than £9m.
The firm called in administrators at its three UK offices in March blaming its demise on the knock-on effects of Carillion’s collapse.
Administrators from KPMG have now filed their report at Companies House highlighting Vaughan Engineering’s financial troubles.
Trade creditors are owed £9.2m and are unlikely to receive a penny.
The firm also owed £2.9m to Danske Bank and was holding £1.37m in retentions cash at the time of its failure.
KPMG said Vaughan hit cash flow troubles following two contract disputes and the failure of Carillion who were a “key customer”.
The company had enjoyed rapid growth in recent years with turnover hitting a peak of £50m in 2016.
But that increased revenue led to a loss of £800,000 in 2016 which rose to an operating loss of £2.57 in 2017 as turnover dipped to £38m.
Family-owned parent company Vaughan Group in Northern Ireland is a separate company which is unaffected and continues to trade strongly.
Brankin, a leading ventilation ductwork contractor operating throughout the UK and Ireland is also part of the Vaughan Group and continues to trade unaffected.
from Construction Enquirer http://www.constructionenquirer.com/2018/05/28/vaughan-engineering-failure-costs-supply-chain-9m/
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