Suppliers and subcontractors to collapsed M&E specialist Michael J Lonsdale are braced for a £50m+ hit.
The company’s fall into administration earlier this week sent shock waves through the industry.
Analysis of the company’s latest accounts by the Enquirer shows for the year ended September 30 2022 trade creditors were owed £51m in outstanding invoices.
One supplier said: “It’s fair to assume that number hasn’t got any smaller considering what has now happened at the business.
“A lot of firms are left owed a lot of money.”
Another firm added: ” The rumour is that of the 15 projects Lonsdale had on the go 13 were losing major money.
“They were putting in competitive bids for work for sometime and it looks like inflation, staff shortages and delays caught up with them.”
“The firm’s collapse has sent shockwaves through the M&E market and there are fears a few others are in similar positions.”
Lonsdale ranked in the top 10 M&E firm’s nationally and was one of the major M&E management contractors in London working with major commercial clients on large schemes like Broadgate and Battersea Power Station’s redevelopment.
When the latest results were filed it had a turnover of £191m generating a pre-tax profit of £2.5m.