This week, Pendleton Together Operating Limited, or PTOL, lodged its accounts for the year 2018-19 which were signed off on 24th September including latest updates.
The accounts reveal that the £28million finance from the Together Housing Group (THG) - the ultimate parent company of PTOL - is still not fully in place to sort out the blocks' defects and dangerous Grenfell style cladding that has blighted the nine Salford Council-owned Pendleton blocks for almost two and a half years.
"Those arrangements, whilst well advanced and with draft documents in circulation, are not in a legally binding manner at the date of signing these accounts" explains PTOL Director, P Emsden "The view of the board is that these will be concluded and will provide sufficient funding for the refurbishment works as currently assessed..."
He adds that, while waivers from loan companies and agreements from Salford City Council that it would continue paying PTOL the 'Unitary' charges during all the works have given the board "comfort", they "do not prevent the board from concluding that PTOL is a going concern".
The accounts also 'emphasise' that while "the Directors are confident that the planned refinancing transaction will be formalised in the near future, until all conditions are met and required approvals received the facilities will not be made available...if the new facilities...are not forthcoming the company will have to source alternative funding elsewhere or it would have to cease trading...
"...a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern..." the accounts add.
PTOL made a 'total comprehensive loss' for the year of £21,697,000 (compared to £25,253 last year), has a total deficit of £48,781,000 (compared to £27,084,000 last year) and has current liabilities of £61,369,000 (compared to £44,576,000 last year).
PTOL is currently using £3million of its own reserves to fund "initial contractual works" but total costs of 'further works' are expected to hit £32.5million "albeit that a comprehensive programme of works has yet to be finalised and contracts are not yet placed for all works packages".
The accounts add that "In due course £2million of these additional costs is expected to be recovered through the legal action against the building contractor", which is Keepmoat.
The accounts recognise that, following separate reviews carried out by Trident, Arup and Jacobs, "there were deficiencies categorised into three main areas on the nine blocks...Specifically, these were in relation to the cladding solution, the internal compartmentalisation of the common areas and within the residential flats; where the latter two did not have the required fire and building certificates..."
The 'post balance sheet events' section of the accounts add that "Further litigation will be pursued by the interested parties, with litigation proceeds awarded above £2million allocated as per the Funders, THG and SCC separate cash waterfall agreement.
"In addition" the accounts add "SCC who could potentially levy non availability deductions on PTOL would continue for such deductions to be passed through PTOL to the original construction contractor, Keepmoat, and form part of a litigation claim..."
See also previous related Salford Star articles...
Pendleton Blocks Cladding Removal Delayed Again - click here
True Horror of Pendleton Blocks Fire Risks Revealed - click here
.JPG)
.jpg)
.jpg)
.jpg)
(3).jpeg)
.png)
(1).JPG)
