And Huw Jenkins has a cheek to have a go at our finances
Wed Aug 04, 2010 11:07 am
SWANSEA City Football Club chairman Huw Jenkins's building supplies business has collapsed owing its creditors more than £430,000.
Casey's Building Supplies had been consistently making losses over the past four years, and ceased trading on Monday, July 12.
Mr Jenkins, who was the sole shareholder of the company, had personally ploughed £200,000 of his own money into the business in February this year, but this was not enough to turn its fortunes around.
The Swans chairman spoke to the Evening Post yesterday and said: "My advice to anybody is to stay away from the building industry."
Mr Jenkins has laid the blame for the failure of the business at the door of the credit crisis which crippled the British economy over the past three years.
He issued a statement to creditors and said a marked reduction in cash flow brought about by the banking crisis in the UK ultimately ended the company's ability to trade effectively.
Casey's owes £351,464 to trade and expense creditors, including Swansea Council as a result of the collapse of the business which was wound up voluntarily, and £84,049 to employee creditors.
Mr Jenkins himself is owed £196,521 by Casey's.
The Casey's director said the failure of the firm would not impact on anything to do with the Swans, and told the Post it would not be in his nature to start another business in the near future.
Crisis
He said: "It's not a sad day. It's a reflection on the credit crunch and the financial crisis we have suffered over the past two to three years."
Mr Jenkins said the Casey's depots had been sold off quietly and any staff who wanted to stay had been taken on by the various buyers and relocated into the new companies.
Casey's has been progressively recording losses since 2006 when it made a loss of £45,885 before tax.
The following year this dropped to £39,773 in 2007 before rising again to £150,248 in 2008.
Last year the business made a loss of £314,874 and in the first two months of this year alone its net loss was £64,629.
Mr Jenkins said the company's ability to pay its creditors on a timely basis became difficult during 2007 which lead to a choice of either significantly reducing existing credit limits or withdrawal of all credit facilities.
He said: "The company was then forced to purchase goods on a pro-forma basis, which once again resulted in massive cash flow pressure. This resulted in an extremely difficult trading position going into 2007-08."
Debts
The Swans chairman said bad debts also played a significant role and led to him injecting £200,000 of his own money as working capital into the business as sales continued to reduce at a significant level.
He said: "I hoped that by doing this it would offer a little more time until there was a recovery in the building sector."
Casey's was originally launched in April 1973 under the name of Neygate Limited. This has subsequently been changed three times and the business was known as CBS 2010 when it ceased trading.
It was run from three branches in Landore and Gorseinon as well as a location in Neath which was sold during its troubles to help generate cash.
http://www.thisissouthwales.co.uk/news/ ... ticle.html
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Casey's Building Supplies had been consistently making losses over the past four years, and ceased trading on Monday, July 12.
Mr Jenkins, who was the sole shareholder of the company, had personally ploughed £200,000 of his own money into the business in February this year, but this was not enough to turn its fortunes around.
The Swans chairman spoke to the Evening Post yesterday and said: "My advice to anybody is to stay away from the building industry."
Mr Jenkins has laid the blame for the failure of the business at the door of the credit crisis which crippled the British economy over the past three years.
He issued a statement to creditors and said a marked reduction in cash flow brought about by the banking crisis in the UK ultimately ended the company's ability to trade effectively.
Casey's owes £351,464 to trade and expense creditors, including Swansea Council as a result of the collapse of the business which was wound up voluntarily, and £84,049 to employee creditors.
Mr Jenkins himself is owed £196,521 by Casey's.
The Casey's director said the failure of the firm would not impact on anything to do with the Swans, and told the Post it would not be in his nature to start another business in the near future.
Crisis
He said: "It's not a sad day. It's a reflection on the credit crunch and the financial crisis we have suffered over the past two to three years."
Mr Jenkins said the Casey's depots had been sold off quietly and any staff who wanted to stay had been taken on by the various buyers and relocated into the new companies.
Casey's has been progressively recording losses since 2006 when it made a loss of £45,885 before tax.
The following year this dropped to £39,773 in 2007 before rising again to £150,248 in 2008.
Last year the business made a loss of £314,874 and in the first two months of this year alone its net loss was £64,629.
Mr Jenkins said the company's ability to pay its creditors on a timely basis became difficult during 2007 which lead to a choice of either significantly reducing existing credit limits or withdrawal of all credit facilities.
He said: "The company was then forced to purchase goods on a pro-forma basis, which once again resulted in massive cash flow pressure. This resulted in an extremely difficult trading position going into 2007-08."
Debts
The Swans chairman said bad debts also played a significant role and led to him injecting £200,000 of his own money as working capital into the business as sales continued to reduce at a significant level.
He said: "I hoped that by doing this it would offer a little more time until there was a recovery in the building sector."
Casey's was originally launched in April 1973 under the name of Neygate Limited. This has subsequently been changed three times and the business was known as CBS 2010 when it ceased trading.
It was run from three branches in Landore and Gorseinon as well as a location in Neath which was sold during its troubles to help generate cash.
http://www.thisissouthwales.co.uk/news/ ... ticle.html
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Re: And Huw Jenkins has a cheek to have a go at our finances
Wed Aug 04, 2010 11:13 am
the building industry seems to be thriving in Cardiff for some reason , well PMG and Borley seem to be doing ok ? 
Re: And Huw Jenkins has a cheek to have a go at our finances
Wed Aug 04, 2010 11:14 am
Re: And Huw Jenkins has a cheek to have a go at our finances
Wed Aug 04, 2010 11:30 am
I normally feel sorry for people whose businesses go 'down the pan'.
However in view of the amount of times he has gone on record slagging us off for not keeping our house in order, I will make an exception
However in view of the amount of times he has gone on record slagging us off for not keeping our house in order, I will make an exception