ROOFING AND CLADDING contractors are set to lose out on millions in unpaid debts following the collapse of contractor Clugston Construction.
The final amount will depend on what administrators manage to recover through the company’s assets, which went to the wall in December.
Northern Cladding is owed £672,990 for work on energy from waste projects on Deeside, North Wales, as well as the landmark Viridor scheme at Avonmouth near Bristol.
Multiroof Systems UK is owed £607,550 for work on a new Asda store in Worksop.
Curtis Moore Cladding is owed £66,787 for work on a site at Kemsley, Kent, and Ron Robinson Roofing is owed £5,334 for work at the University of Sunderland.
Lastly, Surveyroof, a drone roof inspection company is owed £540.
The £150m+ turnover company brought in administrators in December, with cash flow issues resulting from a number of Energy-from-Waste contracts.
In total, £71.5m is owed to unsecured creditors of the company, including £10.9m owed to subcontractors.
The report from administrators KPMG says: “The Group experienced cashflow pressures, largely due to significant losses in the company in FY19 caused by onerous Energy from Waste contracts.
“The position was further exacerbated following the failure of a key subcontractor in June 2019, which resulted in significant ransom positions from the supply chain.”
A number of the contracts for Energy from Waste sites were taken on by French joint venture partner, CNIM.