Readie administration pays just £500k to HMRC
Summary
HMRC has received £500,000 from the administration of Readie Construction, far less than the more than £8m originally owed. The report also indicates that unsecured creditors, including a large subcontractor debt, are still expected to receive nothing, with administration costs and failed intercompany recoveries further reducing returns.
Why it matters
The case highlights insolvency risk in the construction supply chain, including the potential for unpaid subcontractors and limited creditor recoveries. Surveyors involved in project monitoring, due diligence or contract administration may see wider implications for contractor stability, payment risk and project continuity.
Key points
- HMRC has recovered £500,000 from Readie Construction administrators against an original tax debt of more than £8m.
- Unsecured creditors, including £18.8m owed to subcontractors, are still expected to receive no distribution.
- Recovery prospects worsened after Readie Management Ltd was dissolved, eliminating a £4.8m intercompany debt claim.
- Administration costs have exceeded estimates, with legal fees, debt-recovery costs and IT costs cited.
- The company previously cited inflationary pressures, subcontractor failures and tighter bond and credit insurance markets.
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