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Home General

Tamdown faces £2m hit if ilke Homes collapses

June 24, 2023
in General
Tamdown faces £2m hit if ilke Homes collapses
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Its AIM-listed parent company Nexus issued a profit warning to the market following the Enquirer’s report yesterday that Ilke Homes has filed a notice of intention to appoint an administrator.

The notice holds creditors at bay for 10 days while the business fights for its survival to find an investor to save the modular business.

Many other contractors and suppliers are warning they will be hit if the firm does fall into administration.

Several volume house builders are also said to be owed cash by ilke.

Tamdown said the total amount overdue from ilke Homes to Tamdown stood at £835,000. A further £962,000 will become due shortly in relation to work delivered up to the end of May with further work in progress in June totalling £250k until sites were stopped last week.

The groundwork firm had also been anticipating additional turnover amounting to £4m over the remainder of the current financial year.

In a statement, it said: “Given developments regarding a potential administration of ilke Homes, there is a risk that Tamdown will be unable to collect these amounts, which would have a significant impact on group profit during the current financial year.

“Tamdown will continue to work with ilke Homes with a view to recovering the amounts due, and Nexus will update the market in due course when the situation is more certain.  

“The Group continues to maintain a robust balance sheet with cash and cash equivalents at the half-year ended 31 March 2023 of £15.9m. Whilst the situation is uncertain, there is the potential for a cash impact of just over £2m.

“Tamdown continues to have strong relationships across a broad range of customers and a reputation for high-quality work.”

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : ConstructionEnquirer – https://www.constructionenquirer.com/2023/06/21/tamdown-faces-2m-hit-if-ilke-homes-collapses/

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