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Administration · 8 February 2022

Midas Construction

Main contractor · Exeter · South West England

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What happened

MIDAS CONSTRUCTION LIMITED (company number 01240442), incorporated in 1976, entered administration on 8 February 2022. Its status at Companies House is now: dissolved.

Why it failed

Covid disruption and inflation cut trading performance and delayed contracts; disputed debts were not collected, subcontractors went unpaid, no solvent buyer emerged and the bank did not renew the overdraft.

  • Main reason: Covid-19
  • Cost inflation
  • Delays
  • Cash flow
  • Clients not paying or failing
  • Funding withdrawn
  • Sale or investment failed

Our summary of the reasons given in the administrators' proposals. These record the administrators' and directors' account of what happened.

An administrator, a licensed insolvency practitioner, takes control of the company to try to rescue it, sell the business or get a better result for creditors than a liquidation.

Timeline

The last accounts and payment report before the failure, then what happened, with the time between each.

  1. 31 October 2020

    Last accounts filed were made up to this date

    12 months later

  2. 31 October 2021

    Last payment practices report ends: average 58 days to pay, 4% of invoices not paid to agreed terms

    4 months later

  3. 8 February 2022

    Administration started

    4 years later

  4. 11 February 2026

    Administration ended

AccountsPayment reportInsolvency

Before it failed

Key figures

Turnover in its last accounts, year to Oct 2020
£260.8m
Accounts at Companies House
Loss before tax, year to Oct 2020
£650k
Accounts at Companies House
Staff, year to Oct 2020
254
Accounts at Companies House
Net assets, year to Oct 2020
£4.3m
Accounts at Companies House
Average days to pay suppliers, 1 May 2021 to 31 October 2021
58 days
27% paid after 60 days, 4% not paid to agreed terms
Its last payment practices report
Owed to unsecured creditors (estimated), as at 8 February 2022
£19.3m
about 1,372 creditors. HMRC owed £2.5m. staff owed £382k. a further £1.3m owed to its lenders. Expected return to unsecured creditors: none expected
Administrators' proposals

The last accounts filed were full accounts made up to 31 October 2020, 15 months before it went into administration.

The full filing history, including any late filings, charges and director changes, is on Companies House.

Lessons learned report

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