GB Building chairman breaks silence

Contractor GB Building is continuing to make last-ditch attempts to avoid collapse, after the firm filed notice to appoint administrators on Tuesday, according to group executive chairman Martin Smout.

Smout, who was uncontactable during the day yesterday, issued a statement late last night via finance house BDO, which has been appointed by £200m-turnover GB to conduct a thorough review of the business.

Smout said GB remained technically still out of administration, with the firm having filed notice of intention to appoint administrators in order to give it “breathing space” to consider its options. He said the business was “currently in dialogue with a number of parties and other stakeholders,” and that he remained “We remain hopeful of a positive outcome.”

The comments are likely to trigger speculation over the prospect of a potential sale or further restructure of GB.

Smout said the company had been dealing with “a number of issues affecting the business, and which have contributed to a deterioration in our working capital position.” Yesterday MJ Gleeson, from which GB demerged in 2005, said GB had filed notice to appoint administrators, and that it now considered its £4.9m investment in the firm “at risk”.

Smout’s full statement reads: “Over the past few months, the company has been working to deal with a number of issues affecting the business, and which have contributed to a deterioration in our working capital position. We recently appointed BDO to help us conduct a thorough review of the business and the options for our future.

“The directors, along with our advisors have been seeking funding solutions with a view to protecting the position of the business going forward. We are currently in dialogue with a number of parties and other stakeholders.

“However, there are significant constraints on cash flow and yesterday following legal advice we filed a notice of intention to appoint Administrators to the company which will allow us to explore our options further. We intend to do everything possible to secure the future of the business and are committed to keeping our people fully informed about what is happening.

“Alongside our advisors, we are continuing to explore funding solutions for the business and discussions are ongoing with various parties. We remain hopeful of a positive outcome.”