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  #71   IP: 147.147.105.71
Old 20-02-2018, 03:43 PM
Powerfab Powerfab is offline
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Default Re: so basically they're bust

Graham,

Lagan are one of the largest and arguably best of the construction companies in N. Ireland and further afield. The groups have their fingers in several pies.

Unfortunately the Construction Index story is the better part of the headline. Breedon are after the Lagan Group which I believe is reasonably solvent. As they say, its interests span production of concrete, aggregates, bitumen, asphalt and tiles, as well as quarries, house-building and waste management.
I don't think they are at risk, but changes are certainly afoot.

However,
The Lagan Construction Group which is a separate entity (two brothers Michael & Kevin split the company several years ago) is in a dire position today.

http://www.bbc.co.uk/news/uk-northern-ireland-43125810

None of this looks good for the companies involved or for construction generally in Northern Ireland.
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  #72   IP: 81.151.174.184
Old 21-02-2018, 12:28 PM
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Default Re: so basically they're bust

As you say ..... dire straits

"administrators called in at lagan construction .... Four companies within the Lagan Construction Group are going into administration, with 200 jobs at risk. "

http://www.theconstructionindex.co.u...n-construction
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  #73   IP: 81.151.174.184
Old 21-02-2018, 12:33 PM
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Default Re: so basically they're bust

another load of slack to be absorbed ... GT will have their hands full, trying to absorb this one as well

http://www.theconstructionindex.co.u...m-defence-deal

" Galliford Try Lagan Construction Joint Venture (GTLC) has been awarded a £135m contract to upgrade infrastructure and facilities at RAF Marham near Kings Lynn in Norfolk. " (June 2017)
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  #74   IP: 81.129.193.34
Old 27-02-2018, 10:42 PM
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Default Re: so basically they're bust

"Another 230 former Carillion employees have been laid off this week, bringing the total redundancies since the company’s liquidation to 1,371 and rising."

http://www.theconstructionindex.co.u...staff-laid-off

to say nothing of all the 'knock on',s affected

See in the news, their finance fella was selling all his stocks and entitlements, like a windmill in a hurricane, the very second he was able to
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  #75   IP: 81.129.193.34
Old 28-02-2018, 10:58 AM
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Default Re: so basically they're bust

This just gets worse and worse ........

" MPs side with Qataris over Carillion "

" ...... the upper reaches of Carillion was stocked with fantasists. It takes a special kind of optimism…to classify money one hopes to earn in the future, on a challenging project, as money ‘owed’ to you. He cannot tell the difference between money he'd like to be paid, he wishes would be paid, and money that is actually owed to him.

http://www.theconstructionindex.co.u...over-carillion

" The parliamentary inquiry into the collapse of Carillion appears to have turned into a game of ‘he said, she said’ as key witnesses provide directly contradictory evidence. And the MPs have decided who to believe.

Richard Howson was cross-examined by the inquiry on 6th Feb. Frank Field has decided he's a 'fantasist'

In the case of whether Qatari client Msheireb Properties owed Carillion £200m, as stated in evidence by former Carillion chief executive Richard Howson, the MPs leading the inquiry have decided to take the side of Msheireb.

In testimony to a joint inquiry by the House of Commons Work & Pensions and Business, Energy & Industrial Strategy (BEIS) select committees, Msheireb Properties says that in fact it was the one owed millions by Carillion, including £47m in liquidated damages.

On the basis of Msheireb’s statement, they have dismissed Carillion executives as ‘fantasists’.

Richard Howson was among several former Carillion executives to be cross-examined by the joint committee inquiry on 6th February. He told the committees that Msheireb "owed us £200 million" when he was removed as CEO in July 2017, rising from "about £180 or £190 million" in March 2017. Carillion had been working in Qatar in joint venture on the £4bn Msheireb Downtown Doha development.

Mr Howson was kept on by Carillion as chief operating officer for three months after his dismissal from the board in a last ditch bid to get some money out of Msheireb. He told the MPs that he “felt like a bailiff”, making several trips to Doha in attempts to get money owed.

Msheireb "entirely disputes" Mr Howson’s testimony, however, instead stating that he was "misleadingly" referring to "the value of construction work remaining to be completed" plus "the value of claims relating to further delays". On the contrary, Msheireb considers that Carillion owed it "a similar amount of money", comprising:

substantial "good faith overpayments" made "to assist Carillion" "despite these monies not being owed"
direct payments that Msheireb made to subcontractors who Carillion had not paid, to "ensure that they continued with the work", despite the fact that "these were often works which we had already paid to Carillion", and which they intended to recover
contractual delay damages due because of Carillion's failure to complete work "in a timely manner" and "delays caused by Carillion's resourcing, financial issues and problems with their supply chain"
In a letter to the committee published today, the Qatari client says: “Carillion's performance on the project was generally poor. In particular, the works were not completed in a timely manner and, as a result of delays caused by Carillion's resourcing, financial issues and problems with their supply chain, Carillion became liable to pay substantial liquidated damages for delay under the Contract. The liquidated damages Carillion is due to pay are QAR 237 million (or approximately £47 million) as a result of delays to the progress of the work.”

It adds: “Msheireb Properties are sad to witness the demise of Carillion plc, but their demise was not attributable to monies ‘owed’ on this Project. Msheireb Properties strongly rejects and objects to Mr Howson's response to [inquiry co-chair] Mr Field's question, in which he inferred that the Msheireb project and his failure to settle the final account on that project ‘helped to sink Carillion’. Carillion and its management, and they alone, sank Carillion. The Msheireb project was tendered and administered fairly and openly, and there was nothing intrinsic in the Project or Msheireb Properties' administration of it which ‘helped sink the company’.”

Keith Cochrane, who took over from Mr Howson as Carillion chief executive, told the committees: "We were not paid for 18 months prior to the business failing." But Mshereib states: "this is factually incorrect". Carillion "was paid at regular monthly intervals … without exception, in accordance with the conditions of the contract" until January 2017. Payments for 2017 reduced due an agreement that Msheireb "would pay its subcontractors directly as Carillion was unable or unwilling to do so".

The co-chairs of the inquiry are siding firmly with the Qataris in this argument, adding to the evidence that their narrative is already written before all questions have been answered.

Work & Pensions Committee chair Frank Field said: "This extraordinary exchange reinforces the impression that the upper reaches of Carillion was stocked with fantasists. It takes a special kind of optimism…to classify money one hopes to earn in the future, on a challenging project, as money ‘owed’ to you. He cannot tell the difference between money he'd like to be paid, he wishes would be paid, and money that is actually owed to him.”

BEIS committee chair Rachel Reeves said: "The Carillion directors litany of excuses for the collapse of the company is fast unravelling. While spiralling debt problems and failing contracts signalled the alarm to almost everyone but Carillion's directors and auditors, their former chief executive was jet-setting off to Qatar to chase a pot-of-gold that may never have existed. Once again Carillion's directors appear to have shut their eyes and ears to the real problems at the company and failed dismally to take meaningful action to avert its tragic collapse.
"
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  #76   IP: 31.51.59.42
Old 27-03-2018, 09:44 PM
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Default Re: so basically they're bust

and worse .....

" evidence that when the walls were falling down around them, Carillion bosses were focussed on their own pay packets rather than their obligation to address the company’s deteriorating balance sheets. While these directors could still walk off with bonuses intact, workers were left fearing for their jobs and suppliers faced ruin.

“Carillion had a notorious reputation for late payments to suppliers. But while suppliers were waiting up to 120 days to be paid, Carillion directors were doing their upmost to ensure there was no impediment to their receipt of fat pay and bonuses.
"

https://www.theconstructionindex.co....were-protected

who is going to have the balls to see some of these guys face custodial sentences for fraud/etc. ??
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  #77   IP: 90.254.28.235
Old 29-03-2018, 11:05 AM
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Default Re: so basically they're bust

I read an article a couple of weeks ago with an interview of the Balfour Beatty CEO discussing the downfall of Carillion and how he has been working on steering them away from the same pit falls. Basically they all work on too low a profit margin to win the work. He said he was working towards getting a 5% margin on jobs... That's still really low in my opinion
The top 5 big boys are all running around 1% at the moment. It doesn't take long for a couple of jobs to go wrong and bring everything else down at that margin.
Balfours CEO rightly pointed out that if clients want quality, safety and speed to increase, they need to pay more for it. Seems simple but as we know in the construction game - it seems to be a race to the bottom every time.
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  #78   IP: 78.147.3.167
Old 29-03-2018, 06:11 PM
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Default Re: so basically they're bust

1% doesn't sound like a margin to me? I thought they were business men running these companies
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  #79   IP: 86.128.54.254
Old 29-03-2018, 08:55 PM
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Default Re: so basically they're bust

Quote:
Originally Posted by OllieGunns View Post
Balfours CEO rightly pointed out that if clients want quality, safety and speed to increase, they need to pay more for it. Seems simple but as we know in the construction game - it seems to be a race to the bottom every time.
Balfours are a very progressive company. Heading again in the right direction.

Setting up there own earthmoving division too! Watch that space!
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  #80   IP: 81.151.126.33
Old 29-03-2018, 09:45 PM
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Default Re: so basically they're bust

very worrying article about the finances of interserve about today.....certainly glad we have kept away from them. The fees alone on the finance of the debt facility are to the tune of 56 million each year until 2021.
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