Do Sunningdale House Developments Ltd have growing cashflow issues?

Word has reached the Shepway Vox Team, that various companies within the Sunningdale House Developments group of companies, owned by David Pownceby (pictured), are having serious cashflow issues.

The issues have become so serious that what started of as a trickle of companies going to adjudication, has now become a steady flow.

The term “adjudication” refers to the process of resolving a legal dispute, hearing evidence and deciding rights, and coming to a formal decision in court. However, it takes a slightly different meaning when used specifically in cases relating to construction law.

The objective of adjudication is to reach fair, rapid and cost-effective decisions on disputes arising under construction contracts, usually within a 28 day timeframe. The appointed RICS adjudicator is a subject-matter expert with years of experience in the construction industry, who will decide on matters brought to their attention by the parties using their own specialist expertise. Under UK law, all disputes arising out of building contracts can be taken to adjudication, whether they relate to prompt payment issues or the quality of work done. Whether or not they have an adjudication clause in their contract, clients, contractors and subcontractors are all entitled to take a dispute to adjudication simply by giving notice and contacting RICS to appoint an adjudicator for them

One expects an honest day’s work for an honest day’s pay, yet companies and suppliers who have worked for Mr Pownceby’s group of companies, have not always received what they’ve been owed, and been forced to adjudication to get paid. In some instances, legal action by companies working for his group of companies had to be taken to get paid. This had the desired effect to loosen  the purse strings.

In the past Mr Pownceby’s former companies, of which he was the person of significant control, and a shareholder, were dissolved owing £34,331,309, to 124 creditors, according to companies house, and the Insolvency practitioner who wound the companies up.

This caused a lot of fall out in the local construction industry. So much so, a number of suppliers and contractors had to wind up their companies, due to not being paid.

Sunningdale are in the process of dealing with Folkestone & Hythe District Council about buying the South Rd swimming pool site in Hythe, and a swathe of Princes Parade for a price of £26m. Do they honestly have the ability to pay this sum?

We note Sunningdale have recently taken out a loan from Propsect Capital Security Trustees Ltd, based in Jersey. This has been placed as charges against Sunningdale, on Companies House. The charges relate to Sunningdale House Developments (Foxwood) Ltd, a site in Hythe off the A259; which was a former school. At the time of writing the site is owned by KCC, according to land registry documents.

When one looks at the history of his previous companies before they went under, one sees a similar pattern of behaviour.

If you are a supplier or contractor who is currently working for any of the Pownceby companies, it might be a wise idea to inquire about any payments owed, and get any response in writing for the audit trail. We say this because the evidence of cashflow issues are real. Given Mr Pownceby’s previous company history, does a leopard change his spots?

We’ll leave to you think about that.

We give Mr Pownceby the full right of reply. We have previously reached out to him, but never received a response, the door remains ajar.

The Shepway Vox Team

Dissent is NOT a Crime