Administration · 1 April 2016

Phd1 Construction

Main contractor · Liverpool · North West England

What happened

PHD1 CONSTRUCTION LTD (company number 08854778), incorporated in 2014, entered administration on 1 April 2016. Its status at Companies House is now: liquidation.

Why it failed

Its main client's project companies paid late from mid-2015, then stopped paying certificates; it fell behind with creditors, faced a winding-up petition and stopped trading in February 2016.

Main reason: Clients not paying or failing
Delays
Cash flow

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.

31 January 2015
Last accounts filed were made up to this date
15 months later
1 April 2016
Administration started
3 years later
8 May 2019
Administration ended
8 May 2019
Creditors' voluntary liquidation started (shareholders resolved to wind up)

AccountsPayment reportInsolvency

Before it failed

Key figures

Turnover in its last accounts, year to Jan 2015: £22.1m; Accounts at Companies House
Profit before tax, year to Jan 2015: £325k; Accounts at Companies House
Staff, year to Jan 2015: 8; Accounts at Companies House
Net assets, year to Jan 2015: £257k; Accounts at Companies House
Owed to unsecured creditors (estimated), as at 13 May 2016: £11.5m; of which trade creditors £7.8m. HMRC owed £75k. a further £60k owed to its lenders. Expected return to unsecured creditors: expected, amount not yet known; Administrators' proposals (includes £3.6m owed to a funder)

The last accounts filed were medium-sized company accounts made up to 31 January 2015, 14 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

We're writing plain-English reports on major construction failures: who was involved, why it happened, the warning signs and how long they were visible, and what to look out for next time.

In the news

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