Eleven jobs go with ADA in liqudation

Jan 14 2010 by Jez Davison, Evening Gazette

ARMSTRONG Davis Associates (ADA) has become the latest victim of last year’s worldwide construction crash.

The Stokesley-based consultancy, set up in 1999 as a specialist in contract resolution, has gone into liquidation with 11 job losses.

The company operated in the UK, Europe and the Middle East.

Liquidators, Yarm insolvency expert Taylor Rowlands, said it fell into difficulties following the collapse of the global construction market, including in cash-strapped Dubai, where the company recently expanded, employing one consultant.

ADA ceased trading with a £110,000 hole in the balance sheet - £70,000 of which related to staff costs. However liquidator Harvey Madden said creditors were likely to claw back a proportion of the money owed to them.

He said: “We’re still working on claims from creditors but the likelihood is that a dividend will be paid.”

At the start of last year, ADA said it was aiming to double annual sales of just under £2m by 2012 by capitalising on increased demand for its resolution services as more firms came under pressure in the downturn.

At the time, Jeremy Wright, ADA’s business development manager, said: “The construction industry is a hot potato - it’s fraught with opportunities to enter into misunderstanding.

“In a recession, everyone wants to hold on to their own position. 2009 will be a good year for our business.”

But in the end, the global crisis overwhelmed even ADA.

Mr Madden said: “The construction downturn hit them tremendously. They were trying to get into the Dubai market and felt it would give them further opportunities.”

ADA was launched in 1999 by chartered surveyors Dave Armstrong and Bob Davis.

At its height ADA employed 20 staff and in the year to March 2008 generated revenues of £1.8m.