Page 9 - How Not To Cook The Books Article

By early 2007, the Frains were looking for a buyer. From a turnover of
£100m in the financial year to March 31 2007, Wrekin suffered a pre-tax
loss of £9m.

Unwin 2007- 2013

Wrekin Group and Wrekin Construction were acquired by the Tamar
Group owned by David Unwin. New board members introduced to

Wrekin:

David Unwin (Sr.) (chairman)

David G Unwin (director) and

John Woodcock (joint managing director)

In March 2009 Wrekin Construction went into administration, with nearly

500 jobs losses. It blamed Royal Bank of Scotland (RBS) for its
predicament because the bank would not extend credit to cover its cash-
flow problems. RBS retorted that Wrekin was unsustainable due to
"creditor pressure". It owed more than £20m to about 1,000 creditors, as
well as another £20m to its pension fund. But Wrekin claimed that it had

£40m worth of orders up to the beginning of March 2009 to re-vamp
Huddersfield’s Town Centre. That it had an overdraft of £4.25m and was
overdrawn by only £2.8m. The company said that:

"All Wrekin Construction needed to keep going in a very
competitive market was £2m to £3m". (3)

Building workers' union Ucatt said a healthy company was failing
because banks would not lend.

"There is a particular problem with the banks bailed out by
government cash not passing it on to construction
companies. This must be the last example of this problem,"

said Alan Ritchie, general secretary of Ucatt (3).
Wrekin claimed it had signed two contracts worth a total of £50 million
on the day it had been taken into administration.