Richard Crookes Construction ‘mulls future’ amid speculation it could go bust

• Speculation yet another building company about to go bust
• Richard Crookes Construction denies claims about its future 

Speculation is swirling that yet another billion-dollar construction company could be about to go bust in a horror time for the industry. 

Richard Crookes Construction, which has been in business for almost 50 years, has denied talk that it’s about to call in Deloitte and go into voluntary administration.

The family owned company is well known for huge projects such as Sydney’s Modern Art Gallery and the UTS Central building at the University of Technology.

If the construction giant, which started in 1976, does go into administration, it will follow the collapses of huge industry players such as ProBuild and Porter Davis.

There has been speculation for some time that Richard Crookes Construction (RCC) has been ‘mulling its future’, according to the Australian Financial Review.

But the company has denied it engaged with Deloitte ‘in any way, shape or form’ to discuss going into administration.

RCC posted $1.3billion revenue in the 2022 financial year, down from $1.58billion in 2021.

However unprecedented construction costs, particularly materials and staff, meant it only made $7million in profit after tax.

At the end of the last financial year RCC had $543.9million in assets, including $145.2million cash and equivalents and $139.8million in contracts.

In accounts filed with the corporate regulator, RCC had $455.5million in liabilities, including being owed $183.8million in trade and other payables and $205.3million in contract liabilities.

According to its website, RCC employs 871 people, has 51 current projects and has built projects across affordable housing, aged care, defence, education, residential and retail. 

It has offices in Sydney, Canberra, Brisbane, Newcastle and the regional NSW city of Tamworth.

Daily Mail Australia has contacted Richard Crookes Construction for comment. 

In what has been a dreadful period for building companies, Porter Davis Homes Group was handed to liquidators Grant Thornton following its collapse in March. 

That failure left 1,700 houses across Victoria and Queensland half-built. 

It was reported in April that Porter Davis owed close to $33million to the Commonwealth Bank as the long list of debts yet to be settled by the collapsed home builder was revealed. 

When Porter Davis collapsed it was Australia’s 12th biggest home builder.