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Tue October 20 2020

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Connaught owes suppliers £57m

5 Nov 10 Failed social housing contractor Connaught collapsed owing trade creditors £57m, according to a report by its administrators.

The firm had 50,000 supplier invoices waiting to be processed when KPMG was appointed to the stricken firm in September.

PTS Plumbing Trade Supplies, part of BSS, which is set to be acquired by Travis Perkins, was the biggest single trade creditor, and is owed £6.3m by Connaught.

Other builders merchants were also badly hit, with Jewson facing a £2.2m loss, and Travis Perkins owed £1.7m.

Trade creditors are likely to have to settle for a paltry £600,000 split between them.

Connaught owes HM Customs and Excise £21.7m.

Meanwhile, staff are still to receive wages, holiday pay, redundancy payments, and pay in lieu.

They are unlikely to see anything above the £380 a week underwritten by the government.

Former chief executive Mark Tincknell is owed £28,708 by the company.

Finance director Stephen Hill is missing £23,799, while Peter Jones, suspended from the northern division of the business following a share sale prior to a profit warning, is owed £55,172.

Connaught collapsed in September with £215m of debt. Its banks, led by Royal Bank of Scotland, are likely to suffer a 'significant shortfall', KPMG's report found.

The administrator has written a bill for £3.9m after its staff put in 9,510 hours investigating Connaught's downfall.

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MPU

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