Cardy Facts

Council has had an offer from Cardy Construction to buy out SFP and build. I thought some background would be appropriate.

Cardy Design Build Ltd, formerly CARDY (LUTON) LIMITED (name changed 12/10/2010), is the vehicle used by the Cardy group to deliver the build at the former Pleasurama site. They were appointed by SFP Ventures (UK) Ltd in September 2009 just after the revised Development Agreement was signed with TDC.

Using information available from accounts filed at Companies House below we can see between 30/3/2009 and 30/3/2010 a drop in the net worth of over £300K. This peaked by 31/3/2013 at a net worth of over -£1.4M showing a net outflow of cash.

This net outflow is relatively normal in the development of a build project which would normally be offset at the builds conclusion when the units are sold however in this case the project shows no sign of completion and might go somewhere to explaining why Cardy are keen to take over.

It is important to stress Cardy is a group of reputable Companies and obviously involved in more than just this contract. Based on Companies House figures which are only reporting historical fact the overall Net Worth of all the companies is minus £92K

Cardy Design Build Ltd

Date	Liabilities	Assets	Net worth
30/3/2009	£372873	£326115	-£31920
30/3/2010	£1515011	£1143926	-£369645
30/3/2011	£719591	£251383	-£468208
29/9/2011	£1227628	£189249	-£1038379
30/3/2013	£2370474	£890951	-£1479523
30/3/2014	£2128543	£902914	-£1225329

 

 Beneath is a list of all the Cardy group based in Canterbury with details of directors, last accounts filed and net worth. There is however one anomaly that has been found:

Cardy Developments Limited Co number 06726001

A non-trading Company formerly Future Homes Online and Shaun Patrick Keegan was a director from 13/5/2010 to 20/5/2014. Head Office is registered at the Mudd Partnership in Billericay, Essex.

 Cardy Developments Limited was set up on 16 Oct 2008 and has its registered office in Essex. Its current status is listed as "Live" and it currently has one director. Its founding director was Mr Christopher Kevin Warr An Estate Agent). Cardy Developments Limited has no subsidiaries.

 As this company had as its director the same director as SFP Ventures (UK) ltd there is a lot of concern that this was a deliberate act for some nefarious purpose which has somewhat backfired on Shaun Keegan.

Then we have the Cardy group acting as developers in Lowestoft instead of the real owners of the land Flight Services SA based in Geneva with Colin Hill on the board who is Shaun Keegan's son in law.

http://cardygroup.co.uk/company_profile/profile.php?type=company

 

Cardy Group Holdings Limited Co number 07033349

Last accounts filed 29/9/2013 Net worth £555.9K

Current Directors

Mr Stuart Nicholas Gremo Born 62 years ago: Jan 1952 Director, Building Contractor 08 Oct 2009 — Present (4 years, 11 months, 3 days)
Mr Michael Stannard Born 49 years ago: Jan 1965 Director, Building Contractor 08 Oct 2009 — Present (4 years, 11 months, 3 days)

Cardy Healthcare Limited Co number 04823175

Latest accounts 7/7/2014 net worth £44.7K

Directors

Mr Michael Stannard Born 49 years ago: Jan 1965 Director, Building Contractor 07 Jul 2003 — Present (11 years, 2 months, 4 days)
Mr Stuart Nicholas Gremo Born 62 years ago: Jan 1952 Director, Building Contractor 07 Jul 2003 — Present (11 years, 2 months, 4 days)
Mr Christopher Stuart Gremo Born 36 years ago: Jun 1978 Director, Director 14 Jul 2014 — Present (1 month, 28 days)
Lee Terry Johnson Born 39 years ago: Jun 1975 Director, Director 14 Jul 2014 — Present (1 month, 28 days)

Cardy Construction Limited Co number 02780134

Latest accounts filed 15/1/2014 net worth £507.4K

Directors

Mr Michael Stannard Born 49 years ago: Jan 1965 Director, Building Contractor 15 Jan 1993 — Present (21 years, 7 months, 27 days)
Mr Stuart Nicholas Gremo Born 62 years ago: Jan 1952 Director, Building Contractor 15 Jan 1993 — Present (21 years, 7 months, 27 days)
Mr Christopher Stuart Gremo Born 36 years ago: Jun 1978 Director, Director 14 Jul 2014 — Present (1 month, 28 days)
Lee Terry Johnson Born 39 years ago: Jun 1975 Director, Director 14 Jul 2014 — Present (1 month, 28 days)

Cardy Design Build Limited Co number 05020531

Latest accounts filed 20/1/2014 net worth -£1.2M

Directors

Mr Michael Stannard Born 49 years ago: Jan 1965 Director, Building Contractor 20 Jan 2004 — Present (10 years, 7 months, 22 days)
Mr Stuart Nicholas Gremo Born 62 years ago: Jan 1952 Director, Building Contractor 20 Jan 2004 — Present (10 years, 7 months, 22 days)
Mr Christopher Stuart Gremo Born 36 years ago: Jun 1978 Director, Director 14 Jul 2014 — Present (1 month, 28 days)
Lee Terry Johnson Born 39 years ago: Jun 1975 Director, Director 14 Jul 2014 — Present (1 month, 28 days

Cabinet conundrum

Cabinet meet to discuss Pleasurama on the 11th September
 (Extracts)
2.3 Acting on the recommendations contained in the Cabinet report made on the 20th
February the Council served Notice on the developers legal advisor requiring remedy
of the breach of the agreement.
2.4 Following the service of the Notice the development agreement contractually provides
for parties to enter into mediation when there is a significant dispute and therefore on
10th July, a without prejudice meeting took place at the offices of Pinsent Masons.
2.5 At this meeting the Developer informed officers that they had been approached by
Cardy Construction Ltd to acquire the share capital of SFP (Ventures) Ltd thereby
proposing to take ownership of all SFP contractual obligations (including this
development agreement with the Council) and that in principle, the Developer is keen to accept the offer. This would mean that Cardy Construction Ltd would become
responsible for finishing the construction works in accordance with the planning
permission.
2.6 Furthermore Cardy Construction Ltd would amalgamate this company into the
established parent group of companies which has an long history of successful
performance with such schemes.
2.7 Additionally, Cardy Construction Ltd are, in principle, in a position to enter into an
agreement which, subject to successful negotiations between the parties,*1 would mean
the Council would not only receive the overage payments in advance of completion of
the construction but also provide additional benefits for the Council.
2.8 Cabinet is asked to note at this point that the current contractual arrangements with
SFP entered into in 2006 mean that the Council has substantially disposed of its
freehold interest in the land (with freehold transfer provisions documented in the
development agreement); the Council’s only continuing legal interest is the right to
receive overage payments in respect of the completed units.
2.9 Notwithstanding the problems that the developer has outlined which they state have
caused a problem in developing out this construction (see 3.2.3) if the matter
progressed to Court, the Courts would expect the Council to undertake an objective
assessment of all reasonable offers put forward in order to complete this construction
project and by doing so receive the overage payments owed to them.

3.5 Furthermore, SFP (Ventures) Ltd could at any stage decide to contest any attempt to
terminate the development agreement by formal action on the basis of several
arguments. Whilst there are varying degrees of merit to these potential challenges
they might include:-
a) some of the delays to the development were caused by matters outside of their
control and therefore may validate the request by SFP to extensions of time, for
example the problems with the cliff face wall, access and egress restrictions.
b) SFP have also made allegations about the actions of a particular Councillor
trying to undermine its attempts to fund the scheme and promote the
development (including its attempts to identify a suitable hotel operator).
c) Notwithstanding the programme of works agreed at the time of the 2009
variations required the developer to build in an illogical manner because the
hotel could not sensibly be opened with the residential still underway; the
highways issue in 2010 made it practically impossible too for the reasons
documented in (d) below.
d) A review of the programme of works in light of the access/egress restrictions
mentioned means that it would be extremely difficult to follow in a safe and
practicable manner (given that if the hotel was built first in accordance with the
programme, access to the remaining site would be obstructed by the hotel), and
Health & Safety Construction Regulations require adjustments to works
programmes where there is a safer way of delivering the project.

FoRS has a response to the above and has issued the following statement and in view of *1 above would like to see points 1 &2 incorporated into any new agreement.

Re: Pleasurama Site

Following the release of the Cabinet papers today Friends of Ramsgate Seafront would like to make it clear that the proposed deal with the current builders Cardy allowing them to rewrite the Development Agreement with TDC is inappropriate and is the wrong use for the site.

Allowing for the caveat that Planning has been granted in 2004 and “work” had started it is unbelievable that TDC would still be considering allowing housing on this site despite their own call for leisure related activities in their own plan (Ramsgate Renaissance documents) in 1998.

Notwithstanding this we believe that 3 things are made clear in the new Development Agreement that will have to be signed by TDC and Cardy before building can start.

1. The Freehold of the site must remain with Thanet District Council and not be sold to Cardy or any other party
2. That the cliff face maintenance be part of the leaseholders responsibility as it used to be up until the current leases were assigned
3. That proper “due diligence” be done on the new developer to ensure that Shaun Patrick Keegan and his associates cannot benefit in any way from any profits ensuing when the development is sold

FORS want to make it clear that we in no way condone the Council’s actions however we understand the position past actions by previous administrations have placed the Council in a very difficult situation.

 

Max Bygraves

The late great Max had this as a byline "I wanna tell you a story" but I leave it to the imagination of the reader as to the truth of it.

1992 Brooke Marine ceased trading*1

1993 The Trustee in Bankruptcy (Anthony William Mudd deceased) sold all the plant and machinery by auction*1

1997 Flight Services SA was incorporated in Switzerland*2

1997 Flight Services SA become the proud owner of "Land at South Shipyard, Heath Road, Lowestoft" 18 hectares of the former Brooke Marine*3

December 2002 Terry Painter, in front of TDC stated “He (Shaun Keegan) recently purchased 50 acres of land in Lowestoft on the waterfront” 

January 2006 SFP Ventures (UK) ltd incorporated. Accountants the Mudd Partnership based in  Billericay Essex

September 2006 SFP Ventures (UK) ltd sign a Development Agreement (DA) with TDC for 
 Pleasurama

January 2008 Proposal put to Waveney Planning department by CKS Developments Ltd*5 for housing at Brooke Marine Link here

September 2009 New DA signed between Keegan (SFP) and TDC. Due diligence has revealed that SFP Ventures use the business address of Brooke Business Park where Karen Louise Haylock is the manager*4

21/8/2013 Golden Balls email  link here

November 2013 unconfirmed story says Cardy bid to take over Pleasurama rejected by TDC

Spring 2014 Waveney Council confirm site at Brooke Marine to have outline permission for residential

August 2014 TDC accept that if Cardy buy SFP Ventures (UK) Ltd from the current owner then they will deal with Cardy over the development

September 2014 proposal to Cabinet to accept Cardy should they complete purchase
Coincidentally Assael a leading firm of architects were commissioned by Cardy Construction Ltd to design 850 houses on the former Brooke Marine link here


Wheels within wheels, links within links, deals within deals. The coincidences mount up and Ramsgate's future seems to be the last thought in the mind of developers.

Why does the son in law of the current developer set up a company called Flight Services SA to buy from his accountant land which could have as easily be done with a UK registered Company?

How is it the client instructing a leading firm of Architects is a building firm in Canterbury when the legal owner of the land is a Swiss firm headed by a man who lives in Stutton, Suffolk?

There may be other questions and the answers to the above are probably perfectly legitimate and maybe just confusing to others. 

I hope that this doesn't all end in tears for a reputable building firm based in Canterbury

*1 Re: Brook Business Park

Brooke Yachts International ceased trading in 1992.
The Receivers were A W Mudd of Billericay Essex.
In 1993 all equipment and items to do with shipbuilding were auctioned.
The site was sold and the current owners (not known) revenue is provided from mooring fees and the letting of buildings etc.
No new structures have been erected.
The future of the site as laid out in the local plan is for mostly residential development.

Peter Hansford,
Brooke Archivist 25/6/2013

 

*2

 

*3

*4

*5 Spokesperson Shaun Keegan in the article however CKS Developments ltd (05999282)  has one real person as director Louise Karen Haylock. addendum 15 May 2012

Return Of Final Meeting In Creditors’ Voluntary Winding-up