Construction Rating
← Failures register

Administration · 8 March 2022

Realisations (CM)

Housebuilder · Newark · East Midlands

Share

What happened

REALISATIONS (CM) LIMITED (company number SC041252), incorporated in 1964, entered administration on 8 March 2022. Its status at Companies House is now: administration.

Why it failed

Material price rises, Covid delays and quality remediation on legacy contracts caused losses and liquidity strain; an unforeseen funding gap could not be met after customers declined further funding.

  • Main reason: Cost inflation
  • Covid-19
  • Delays
  • Losses on contracts
  • Cash flow
  • Funding withdrawn

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.

Previously known as: CALEDONIAN MODULAR LIMITED, CALEDONIAN BUILDING SYSTEMS LIMITED, CALEDONIAN MINING COMPANY LIMITED.

Timeline

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

  1. 31 March 2020

    Last accounts filed were made up to this date

    2 years later

  2. 8 March 2022

    Administration started

AccountsPayment reportInsolvency

Before it failed

Key figures

Turnover in its last accounts, year to Mar 2020
£45.3m
Accounts at Companies House
Loss before tax, year to Mar 2020
£2.8m
Accounts at Companies House
Staff, year to Mar 2020
222
Accounts at Companies House
Net assets, year to Mar 2020
£3.3m
Accounts at Companies House
Owed to unsecured creditors (estimated), as at 8 March 2022
£20.8m
of which trade creditors £12.5m. HMRC owed £1.5m. a further £30.6m owed to its lenders. Expected return to unsecured creditors: none expected
Administrators' proposals

The last accounts filed were full accounts made up to 31 March 2020, 23 months before it went into administration. Private companies have nine months after their year end to file, so a gap of more than 21 months usually means the next accounts were overdue, one of the warning signs worth checking for.

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.

Sign up to be told when reports are out

In the news