SD Samuels CEO Sets the Record Straight on Administration

CEO OF SD SAMUELS (Special Projects) Ltd has set the record straight after news that the contractor intends to appoint administrators broke at the start of the new year.

The £15m turnover roofing and cladding contractor was reported to have got into trouble as a result of building debt, losing an investor, and adjudications.

Now, SD Samuels CEO, Fred Mills has set the record straight, explaining the reasons the company has experienced financial difficulties leading up to its entering administration.

Set the Record Straight

In a statement issued today, Fred Mills says:

 

The company was formed some 32 years ago and has over the years traded very successfully and profitably to the extent where we were recognised to be one of the top cladding contractors in the country.

Blue chip/large companies have been happy to trade with us over the years together with many suppliers who have had the benefit of receiving significant sums of monies from ourselves.

The appointing of administrators was the result of certain events and not as has been reported recently by the media.

The facts are as follows: –

We had two clients go into administration owing us substantial sums of money.
One being Mid-Group who owed us in excess of £300k, the other being Hartly Global who owed us a figure of circa £200k.
Our bankers withdrew the overdraft facility overnight once they had clawed back their own debt, this was done with no notice whatsoever.
We had three particular clients who continually deducted large sums of monies from monthly applications (without just cause in our opinion) causing us a major cash flow problem.

We are prepared to supply proof of a successful Adjudication against one of these companies whereby we were awarded a substantial sum for late-payment and variations which they duly paid but then reduced the next application by the adjudicated amount. These are the facts and whilst I am not prepared to name these Contractors publicly, I am quite prepared to speak to anyone on an individual basis about these companies with written proof of my allegations against them.

I can confirm that despite what previous media reports state, we have never lost an adjudication and do in fact have a 100% success rate.

These three projects have cost the company circa £1m.

We had a bad project whereby we made an estimating error to the tune of six figures however, rather than walk off the project when the losses were minimal, we did the honourable thing and completed the project based on promises that the contractor in question would meet us to reach an amicable financial settlement only to find that on completion we were told, they would not negotiate any further monies.
Like all companies in our sector, we have also suffered losses due to increased material costs whereby we took projects on a fixed price basis that prevented us recovering the increased costs. We estimate that this resulted in a 20% loss of profit for the year.

Finally, we have been subjected to abuse, threats, and social media comments that are totally fabricated. We have tried to-date to ignore these comments, but our legal options remain open at this stage.

The facts are that we are now trading with our sister company SD Samuels Limited which has been in existence and trading for some 15 years, in this regard we are attempting to save peoples livelihoods and produce the type of projects that SD Samuels (Special Projects) Ltd were used to providing.

We will be relying on suppliers and previous clients to achieve this.

In these circumstances we have certainly found out who our true friends are and were.

The above is factual and can be proven and I will personally be responsible for any challenges to the above. Individuals or companies are welcome to contact me should they so wish for any clarification.

Thanks for the opportunity to address the real facts about the company which I can assure everybody has been heart-breaking for many people that have worked with us.

Fred Mills

C.E.0.

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