Axcess Demolition and Excavations books ‘not accurate’: Report

A Moolap-based demolition company that ended up owing more than $1m in unpaid taxes and $350,000 in superannuation has been accused of failing to maintain proper financial records.

Axcess Demolition and Excavations has entered liquidation, owing $1.5m in tax.

A demolition contracting company that ended up owing more than $1m in tax and $350,000 in superannuation failed to meet its obligations to maintain proper written financial records, according to a liquidator.

Moolap-based Axcess Demolition and Excavations, which lists Chris Dimitrovski as its sole director, was registered in 2005 and ceased trading in 2020.

Con Kokkinos of Worrells was appointed liquidator on August 21 this year to formally wind up the company’s affairs.

In his report, Mr Kokkinos detailed how the company accrued significant debts in tax and superannuation.

The statutory report prepared by Mr Kokkinos noted financial strain was placed on the company and its director due to alleged mismanagement of both the director’s and the company’s banking arrangements.

Mr Kokkinos reported being advised that the business collapsed after a significant loan was mistakenly added to an overdraft.

Despite attempts to restructure the business, cash flow issues persisted.

The company’s downfall was attributed to several factors, including a significant loan made to a related entity, the impact of Covid and government lockdowns leading to job cancellations, and personal issues affecting Mr Dimitrovski’s ability to manage the business.

Mr Kokkinos’ investigations revealed the company maintained an account with Westpac, but at the time of his appointment, no surplus funds were available.

Westpac holds a legal claim over all the company’s current and future assets as security for an overdraft facility.

As of the report’s date, the company owed Westpac $297,611.

According to a report on company activities filed by the director, there were no outstanding trade debtors.

However, an analysis of the company’s accounts uncovered debtors totalling $1,074,806.

Axcess Demolition and Excavations has entered liquidation, owing $1.5m in tax.

Mr Kokkinos stated Mr Dimitrovski had advised him there were no outstanding debtors at the time of his appointment and the accounts had not been reconciled or maintained for several years.

“Given the company ceased trading in 2020, it is unlikely that, even if a reconciliation were undertaken and a claim established, the debt would be recoverable,” Mr Kokkinos said.

In his report, Mr Kokkinos also noted the management accounts were neither up-to-date nor reconciled, having been used for several of the director’s entities, which meant they did not accurately reflect the company’s true financial position.

“I have been advised that the internal management accounts do not accurately represent the company’s true financial position, and I understand there are no externally prepared financial statements available,” Mr Kokkinos said.

“This has prevented me from making a definitive assessment of its financial status or accurately estimating the date of insolvency.”

In September, a former employee of Axcess Demolitions revealed they first became aware of unpaid superannuation five years ago.

“The former employees are not happy,” the worker said.

Axcess Demolitions provided landscaping and demolition services for private and commercial clients across the Geelong and Melbourne regions.

Originally published as Axcess Demolition and Excavations books ‘not accurate’: Report