Lessons learned report
Michael J Lonsdale: how a debt-free contractor failed in four months, and 8 checks to protect your business
Michael J Lonsdale was a London mechanical and electrical contractor with a 37-year history, no borrowing and, at times, close to £40 million in the bank. In June 2023 it filed accounts showing a £2.5 million profit. Four months later it was in administration, owing an estimated £118 million to unsecured creditors.
The numbers
- Turnover in its last accounts
- £191.2m
- Profit before tax in those accounts
- £2.5m
- Owed to unsecured creditors, including £50m to group companies
- £117.7m
- Expected back for unsecured creditors
- Nothing assumed
Turnover in the year to September 2022
Profit before tax, a margin of 1.3%
Owed to unsecured creditors, including about £64.9m to trade creditors and about £50m to group companies
For unsecured creditors in the administrators' estimate
More figures are in the full report.
What's inside
- •How a cash-rich business ran short in a matter of months
- •What credit insurers cutting its rating did to its suppliers
- •Why a £15 million loan fell through at the last minute
- •8 checks to make before you work for a contractor
Read the full report free
Create a free account to read the whole report, with every source listed.
Sources
- Joint Administrators' statement of proposals for Michael J. Lonsdale Limited (in administration), Begbies Traynor, filed at Companies House 30 November 2023
- Michael J. Lonsdale Limited annual report and accounts for the year to 30 September 2022, filed at Companies House 17 June 2023
- Check Payment Practices (GOV.UK), search for Michael J. Lonsdale Limited (company 02066642)
This report is for education and is based on the public sources listed. It is not legal or financial advice about any company or contract.