A building company that collapsed suddenly with $10 billion worth of government projects could have been in trouble months before it went under, a report to creditors has revealed.
perth-based Clough Group went into voluntary administration in December.
It completed industrial projects in the energy, resources and infrastructure sector, with projects such as the Federal Government’s Snowy Hydro 2.0 expansion alongside others in NSW, Western Australia and Papua New Guinea.
However, the creditor’s report from administrators Deloitte revealed that while Clough’s revenue grew from $686.3 million in the 2019 financial year to $1.47 billion in 2022, its costs also tripled from $684.2 million to $1.84 billion in the same period.
Deloitte administrators Jason Tracy and Sal Algeri found the group had “indicators of insolvency” from early as July but was likely insolvent from October, The Australian reported.
A deal to sell the company to Italian construction giant Webuild was identified as the best option to save Clough, but it fell through in December triggering its collapse.
Deloitte report’s said Clough’s demise came about as a result of the skyrocketing costs of raw material costs, outstanding claims against some clients,…
