A report from administrators for Woodhead , HLB Mann Judd, suggests the architecture firm’s 2014 yearly revenue was going to be half of its 2012 figures, were it not for a GHD acquisition of the firm.
It has emerged that the acquisition saw GHD taking over 46 ongoing Woodhead projects reportedly worth $12 million.
Assigned by the Australian Securities and Investments Commission (ASIC) on 2 April as administrator of Woodhead, HLB Mann Judd said the Architecture company was on track for a near 50 per cent decline in yearly revenue from $37.7 million in 2012 to a projected $19 million for 2014.
“Overall, Woodhead’s EBITDA was positive between (2011) to (2013), albeit in significant decline, which continued to the marginal negative result for (2014),” says the report, seen by The Australian Financial Review.
“This supports the expectation that Woodhead’s performance was likely to continue to decline in (2014) and beyond and that the Woodhead business was not sustainable in the long term.”
According to the report, Woodhead could still avoid formal liquidation if the deed of company arrangements proposed by administrators are met.
The AFR also reported that a creditors meeting scheduled for Friday could see directors handing over $20,000 to help the company meet the $557,000 in entitlements that are owed to former Woodhead staff members who were not hired by GHD after the acquisition.
A former General Manager, John Wenzel said the proposed director contribution was insufficient considering one of his clients is still owed over $300,000.
