28p in the pound pay-out to axed staff

ADMINISTRATORS expect to be able to give at least £35,000 in salary and holiday pay to staff made redundant by a Saddleworth shopfitting firm which fell into difficulties in March.

That is around 28p in every pound owed to workers at Delph-based Johnson Construction UK, which had a £17 million turnover and included big name supermarkets among it clients.

The company went into administration after the loss of some supermarket work and contract delays. Trade creditors are now seeking £2.7million, employees around £126,638.

Johnson Construction, based at Gatehead Business Park, is being administered by Manchester business services firm FRP Advisory.

The company’s sole director was Jeremy Broadbent, and the company accounts for the year to January 2014 show a turnover of £16.9 million - but the company hasd suffered significant losses.

Cost-cutting measures brought an operating profit of £376,000 in the year to January 2014, but contract delays worsened cashflow problems - leading Mr Broadbent to put in at least £600,000 of his own money.

Mr Broadbent was one of four founding partners of the Fresca Italian restaurant, also at Gatehead Business Park. The restaurant is unaffected by the administration process.

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