A LEGACY of problems led to the collapse of Anvil Projects. Chief executive Andrew Morley said that the building industry was operating on tighter margins than people realised.
Anvil had a strong history of landmark projects in the island since 1989, including the £11m. Credit Suisse development at Les Echelons in Town.
‘We tried to put a strategy together to rescue the company and the bank would not support that,’ he said yesterday.
‘We can’t do any more without bank support, as we tried to explain in the letters to the creditors.’
The letter confirming the company had gone bust was sent out on 30 July.
Mr Morley said there were quite a few local and UK subcontractors affected by the company’s collapse, but could not put a figure on the company’s total debts.
Anvil Projects was set up as an integrated construction consultancy to provide a one-stop solution for property developers and building owners.
The difficulties were put down to an unfortunate combination of factors, including short payments on some jobs.
‘I believe the industry is a lot tighter on margins than people perceive. I don’t think it’s a bed of roses out there and whether anyone follows us I’m not sure, but it’s a difficult business to be in,’ he said. ‘The public perception is that everyone’s busy; it’s just a tight market to be in and we don’t need much to go wrong.’
Anvil finished work on its last project, Mill House, six weeks ago.
‘The Mill House job went well and the client paid on time. That wasn’t the problem; there was a legacy of earlier problems.’
Three people, including Mr Morley, lost their job in the company’s collapse.
‘We have been winding our staff down; we lost a part-time accountant and another chap who took the opportunity to retire.’
Anvil set up Incus Management in 1998 to supply the facilities-management side of its business.
It was bought out three months ago and is still operating.
Article posted on 4th August, 2004 - 12.00am
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