Sureserve sets aside cash for Lakehouse contracts

The ex-owners of Lakehouse Contracts have set aside £2.5m for possible claims on projects carried out by the new business.

Lakehouse was sold last summer for £500,000 to a company called Mapps Group Limited.

The Enquirer has been contacted by subcontractors who have quit sites following rows over payment from Lakehouse.

The former owner has rebranded as Sureserve who posted preliminary results on Tuesday for the year to September 30 2018.

Sureserve confirmed it was facing “potential contingent liabilities arising from the disposal” including “potential claims under parent company guarantees and bonds for projects.”

Sureserve has set aside £2.5m to cover this and written off the £500,000 sale price to zero “in light of the weak performance of the activities since.”

The £2.5m is “for costs of claims under parent company guarantees and bonds which are considered probable following risk assessment of all outstanding parent company guarantees and bonds.”

Executive chairman Bob Holt said: “The divestment included certain contracts yet to be finalised.

“It is hoped that those outstanding works will be concluded by the time of the Group interim results to March 2019. A further update will be provided at that time.”

from Construction Enquirer http://www.constructionenquirer.com/2019/01/22/sureserve-sets-aside-cash-for-lakehouse-contracts/

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