The writing has been on the wall for some months for those following the fortunes of another large construction company struggling to survive – this time it is the Devon based company Midas Group. Not on the scale of Carillion but nevertheless a major hit to the industry.
David Price writing for Construction News reported: “The £290m-turnover company filed the notice for itself and its main subsidiary Midas Construction Limited earlier this afternoon. Such a notice typically means a company will formally appoint an administrator within 10 days, unless it can find an alternative financial solution to its problems first.
“Concern for the company’s future mounted this week after reports that work had halted on a number of projects. The company said its projects had been affected by the pandemic, Brexit, and labour and material inflation and shortages.”
Alarmingly David Price reported that a number of subcontractors were owed five-figure sums by the Exeter-based contractor. Concerns rose after the firm posted a £2m pre tax loss last year and locals noted that work on a number of high profile prejects appeared to have stopped.
The Plymouth Herald reported this week: “Concerns were raised when it emerged that work has ceased on three major Midas Construction hotel projects in Torquay, and that the Coal Orchard development in Taunton had been hit by a dispute with subcontractors.”
In business for more that 40 years the company was one of the largest private construction companies in the country with 500 employees and a large and similar number of contractors who relied on the firm for work.
In a statement, Midas said: “On Friday January 28, 2022, the company filed notices of intention to appoint an administrator in respect of Midas Group, Midas Construction Ltd and Mi-Space (UK) Ltd. This does not mean that Midas has entered into administration and the company continues to operate, while the directors work to explore all available options to achieve the best outcome for the business and our people, our customers, supply chain partners and all our stakeholders. “Midas is committed to pursuing an outcome that will achieve continuity for our live contracts and asks all our valued stakeholders to remain supportive of the group at this time.”
Ian Carrotte of ICSM said it was another blow to the struggling construction industry with the likes of Bumflu Construction Limited and Excellence in Construction Limited to name but a few in liquidation this month and of course others include Simons, Shaylor and Clugston. He said: “My heart goes out to the suppliers and contractors who may not get a penny. It’s the old story of a trusted family firm getting into trouble – may the pandemic as they have suggested, the economic down-turn or even Brexit related factors – whatever the cause subcontractors and supplier should stop trading as soon as a client fails to pay on time.”
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For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk