Stoneguard group crumbles: five operations in receivership

Five of the companies in the Stoneguard group were put into administrative receivership last week while another, Stoneguard Protec, went into administration on Monday.

Work on some contracts is continuing in order to protect their value, while others have been halted.

A source said: “Stoneguard had a full orderbook but then jobs got pulled.”

The company’s turnover rocketed from a figure of £11m in 2006 to £24m last year.

Stoneguard’s latest financial results, covering the 12 months to 31 December 2007, show a pre-tax profit of £430,000 which was ahead of the previous profit figure of £310,000.

The group’s 2007 finances allowed the two directors, Michael Hinman and Nick Constantinou to pay out £254,000 by way of a dividend, this following a £198,000 dividend in 2006.

The two’s combined pay in 2007 was £200,000 including a £36,000 pension contribution.

Baker Tilley is Stoneguard’s administrator. A spokeswoman said it was too early to tell what the outcome might be.

“The most successful scenario would be that the business and its assets are purchased,” she said, “but right now it is still in the process of valuation.

Based in Ruislip in Middlesex, Stoneguard was founded by Hinman and Constantinou. It had recently invested in developing a range of external facades.

The surge in turnover had resulted in the recruitment of more design, QS and site managers.

In its latest annual report, Stoneguard said: “Further investment is being made to supplement the working capital.”

At that time Stoneguard (Midlands) had already been made dormant due to losses incurred on a particular contract in 2007 and one major contract pending being delayed by 18 months.

Rather optimistically the directors commented that despite these setbacks, margins should increase “to circa 23% in 2008”.

That sentiment has proved to be wishful thinking.