Gladedale hit by £78m loss after crisis fix

first_imgMonday 30 August 2010 9:17 pm whatsapp Gladedale hit by £78m loss after crisis fix BRITAIN’S largest private housebuilder crashed to a £78m loss last year as a debt-for-equity swap and a group restructuring piled costs onto its struggling balance sheet.The Gladedale Group, whose projects include the luxury Quartermile housing development in Edinburgh, fell heavily into the red after a huge overhaul in the autumn that wiped out its founder’s shareholding. The news comes as fears grow of a second nosedive for the cornerstone construction industry. Economists are bracing themselves for a slump in second quarter new orders on Friday.Epsom-based Gladedale lost £78.4m between 10 August and 31 December 2009, accounts filed at Companies House reveal. The company generated revenues of £360m but was pushed into negative territory by interest payments on its debt and charges relating to a reorganisation that included the resurrection of its former housing brand, Bett Homes.Last September, covenant breaches by several of its subsidiaries forced Gladedale to hand lender Lloyds Banking Group a 30 per cent equity stake in return for writing off £533m of loans. Founder Remo Dipre, who quit Gladedale in April 2009, saw his shareholding in the company knocked out as a result.The debt-for-equity swap was followed by management turmoil. Chief executive David Gaffney was replaced by Neil Fitzsimmons, the ex-boss of publicly listed housebuilder Redrow. Another former Redrow man, Alan Bowkett, replaced Dipre as chairman while Colin Lewis joined as chief operating officer.Gladedale still had £569m of net debt at the end of 2009, all of it held by Lloyds. In accounts, the company’s directors said: “Although the group is financially secure following the recent restructuring, the group’s ability to comply with its banking covenants continues to represent a key risk to the business.” KCS-content Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family Proof Tags: NULL Show Comments ▼ Share whatsapplast_img

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