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RCG boom goes bust

Nearly 130 jobs are at risk

after the collapse of reinforced

concrete specialist RCG.

The Burnley firm has been

forced to call in Manchesterbased

DTE as administrator

after a string of bad contracts.

RCG was concrete subcontractor

on Bovis Lend

Lease's Bridgewater Place

contract in Leeds for Landmark

Developments and St James'

Securities. But following DTE's

appointment, Bovis Lend Lease

is now in discussions with PC

Harrington to replace the

ailing firm on the 32-storey

scheme.

One industry source said:

'They have had a couple of bad

contracts but Bridgewater Place

was the final nail in the coffin.

'You have to question

whether they were big enough to

handle a subcontract of that size

- around £10 million. There's a

lot of difference between doing

that and a £3 million job, you

have to have systems in place.'

RCG also ran into problems

on two further schemes - a

Kajima project for the Health

and Safety Executive in Bootle,

Liverpool, and a hospital deal in

Burnley where Bovis Lend Lease

was also the main contractor.

The demise of the firm, set up

in 1994 by directors Martin

Rawstron and John Campbell,

has been swift following

relatively healthy financial results

in the year to November 2003.

According to accounts posted

at Companies House, RCG

turned over £14.9 million, and

made a pre-tax profit of

£101,000, after recovering from

losses in 2002.

A note accompanying the

results said: ªThe year has been

satisfactory in terms of financial

results. Future prospects are

extremely good. Investment

during 2003 has led to an order

book of over £25 million with

significant growth in turnover

and profitability forecast for

2004.'

But creditors may yet gain

something from the wreckage as

the firm had net assets of nearly

£500,000 on the books in

November 2003.

DTE and Mr Rawstron were

unavailable for comment.

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