Shropshire building firm to be wound up with debts of £317k

CPS Group, which moved into large premises on the Halesfield Industrial Estate last year and employed about 35 people at its peak, has now entered the process of winding up after accruing debts of more than £317,000.

Launched in 2010, the company had 70 different creditors when it ran into difficulty, and owed almost £20,000 to Telford & Wrekin Council, £10,000 to HM Revenue and Customs, and almost £40,000 to its own director, Andrew Carloman.

After taking into account the £25,297.34 of assets left in the company, it leaves a deficit for creditors of more than £292,000. The list of creditors includes numerous Shropshire businesses covering everything from concrete to electrics.

According to a report for creditors compiled by Birmingham-based liquidator Gagen Sharma, the company suffered during the winter months when it was unable to carry out work on customers' homes because of heavy rain.

Vehicles, plant and machinery were sold, rented premises returned to the landlord, and all employees either left or were made redundant. By September, the company was unable to complete existing, or new work, and bosses decided to put the company into liquidation.

"The directors worked seven days a week to try and find new work," a report from directors says. "However, they could not be competitive with quotations.

"They even carried out work unaccompanied to cut labour costs in an attempt to help the company turn things around."

The statement adds: "During the past 12 months we have had several building projects in the private sector which have taken longer to complete due to weather conditions and problems with the build.

"During the initial months of 2014 our progression was impacted by heavy rain, this particularly affected ground works and internal work that could not be protected from water damage.

"The impact of this resulted in increased labour, consumables, and material costs and subsequent delays in receiving payments."

CPS Group enjoyed rapid expansion during 2013, relocating to larger premises twice as its turnover soared to around £2 million.

It first moved in June 2013, but had outgrown its new premises by the August and relocated again to new premises on Halesfield 13 in Telford.

Directors of the company have been unavailable for comment.