Avebury International in administration

Avebury International, a Milton Keynes-based group, has gone into administration. The company had dubbed itself as “the practical construction consultancy with a focus on affordable housing”.

Avebury’s latest published accounts state that “trading conditions have been difficult, principally as a result of delays in anticipated project starts and senior management involvement in resolving, in the company’s favour, a major litigation.”

This side issue racked up a £200,000 direct cost, when measured by its consumption of management time, and affected margins to the tune of 350,000.

The group had surged in growth before faltering. Annual turnover figures were:

• 2004: £16m
• 2005: £31m
• 2006: £39m
• 2007: £20m

However pre-tax profit over the same period peaked in 2005:

• 2004: £290,000
• 2005: £790,000
• 2006: £530,000
• 2007:  just £39,000

The administrators are Alistair Wood, Martin Pickard and Roderick Weston. They work for the Birmingham office of Mazars.

On its website Avebury states that its nationwide services include:

• architecture
• director procurement
• estate regeneration
• planning supervision
• project management.

The group says: “Our team of over 85 professionals are currently involved in housing construction and regeneration activities valued at more than £200m.

“We have helped produce over 30,000 homes for more than 100 RSLs (Registered Social Landlord) and work to ensure that our activities support social, environmental and economic sustainability.”

Avebury’s latest financial results cover the 12 months to 31 March 2007. It states: “Activity for the current year indicates recovery from the unusual circumstances of 06/07 and the rebuilding of sales and margins back to normal levels.”

There was a £1.1m decrease in cash, following a £1.6m decrease in the previous year.

Even so, the dividend paid out to shareholders ran to £220,000 in 2006 and £88,000 last year.

The group had 10 administrative staff and 57 professionals on its books. The total wages and salaries spend ran to £2.4m.

The directors received a total of £310,000 including a £37,000 pension contribution.

The highest-paid director had £133,000 by way of pay and another £30,000 to add to his pension pot.

The company said that it was under the control of P J Muir “throughout the current and previous year”. He is the managing director and majority shareholder.