Richard Crookes Construction ‘mulls future’ amid speculation it could go bust
Fears a billion-dollar construction firm behind major projects in Sydney could go out of business – as bosses ‘consider the company’s future’
- Speculation yet another construction company on the brink of bankruptcy
- Richard Crookes Construction denies claims about his future
There is speculation that another billion-dollar construction company is on the brink of bankruptcy in a horror time for the industry.
Richard Crookes Construction, which has been in business for nearly 50 years, has denied that it is about to call on Deloitte and go voluntary.
The family business is known for major projects such as Sydney’s Modern Art Gallery and the UTS Central building at the University of Technology.
If the construction giant, which started in 1976, goes into administration, it will follow the collapse of big industry players like ProBuild and Porter Davis.
It has been speculated for some time that Richard Crookes Construction (RCC) is ‘thinking about its future’, according to the Australian financial statement.
Speculation swirled Wednesday night that another billion-dollar construction company was on the brink of bankruptcy. A female tradition is depicted
But the company has denied that it had any dealings with Deloitte “in any way” to discuss the administration’s entry.
RCC posted revenues of $1.3 billion in fiscal year 2022, up from $1.58 billion in 2021.
However, unprecedented construction costs, especially materials and labor, meant it only made $7 million in after-tax profits.
At the end of its last fiscal year, RCC had $543.9 million in assets, including $145.2 million in cash and equivalents and $139.8 million in contracts.
In accounts filed with the company regulator, RCC had $455.5 million in liabilities, including $183.8 million in trade and other payables and $205.3 million in contract obligations.
According to his websiteRCC employs 871 people, has 51 ongoing projects and has built projects in the areas of affordable housing, elderly care, defence, education, housing and retail.
It has offices in Sydney, Canberra, Brisbane, Newcastle and the NSW regional town of Tamworth.
Daily Mail Australia has contacted Richard Crookes Construction for comment.
Richard Crookes Construction, which has been in business for nearly 50 years, denies it is about to call in Deloitte and go on a voluntary basis
In what has been a terrible period for construction companies, Porter Davis Homes Group was handed over to liquidators Grant Thornton following its collapse in March.
That failure left 1,700 homes in Victoria and Queensland half-finished.
In April, it was reported that Porter Davis owed nearly $33 million to the Commonwealth Bank when the long list of debts still to be settled by the collapsed homebuilder was revealed.
When Porter Davis collapsed it was Australia’s 12th largest homebuilder.