Lancsville boss tells subbies it's business as usual

Lancsville Construction boss Mark Henry is reassuring subcontractors that the company is trading well despite insurers pulling cover for trade contractors working for the firm.

Henry took over as leader of Lancsville five years ago from his father, Billy. Annual turnover has rocketed from £20m to £130m during that time.

Henry said: "There is no issue with the company. It has never traded as well."

He added that when figures for the present financial year are published, they will show a profit of £11m.

Concerns surfaced when sub-contractors discovered that no insurers were prepared to cover the value of their work for the company.

"Hermes says we are overtrading," said Henry when asked about the issue. Euler Hermes is a leading insurance provider. Asked if Lancsville was breaching its bank overdraft limit, Henry said: "No."

Latest published figures for Lancsville cover the 12 months to 31 January 2007, when the £130m turnover during that period generated a pre-tax profit of £180,000. In the previous year, there had been a pre-tax profit of £1.3m on turnover of £61m.

In 2007 and 2006, Lancsville's highest-paid director took a £3.5m sum in 2007 and £4.1m in the previous year. There was also a £2m loan to a family trust.

The latest published figures show trade debtors of £20m. That figure is said to divide between £14m of amounts recoverable on long-term contracts and £6m of trade debtors.