Building Industry News

Kingstone Constructions falls
Administrators from solvency and forensic accountants, Worrells, chaired a first meeting of creditors for Kingstone Constructions Pty Ltd on February 17. More than 100 creditors were present for an information update in Gosford, chaired by Worrells Partner, Nick Malanos.

Mr Malanos told creditors that Kingstone Constructions has ceased trading and is under administration, with deficiencies of about $3.5 million. Mr Malanos said that no rescue package is possible and that the administration of the company is likely to progress to liquidation. The company has about 250 known creditors, plus 35 homeowner customers.

"We recognise that this is a difficult time, not only for creditors but for the home owners who haven't had their contracts honoured, and will be doing everything possible to ensure that they have access to sound advice and information as we work through this Administration," Mr Malanos said.

Mr Malanos and partners Michael Hird and Chris Darin will continue to investigate the financial affairs of the business, and the possible reasons for its failure. A second meeting of creditors will be held in March. A detailed report will be prepared and sent to creditors before this meeting. "Our role as Administrators is to maximise recoveries to creditors. However, at this stage it appears unlikely that there will be any dividends to unsecured creditors. We will continue to maintain regular communication with all creditors as the situation unfolds," Mr Malanos said.

Home design company defies the economic downturn
The Australian Home Design Directory (www.homedesigndirectory.com.au) was created in September 2006 at Wagstaffe by a team consisting of Building Designer, Angela Ellis and a Software Engineer, Alan Bron. Their original intention was to build a niche web directory of building industry professionals including architects, building designers, interior designers and builders. They then began to add articles about home design, building and renovation.

At the same time Mr Bron used sophisticated web analysis tools that tracked reader interest. He saw that, despite the building downturn, people were searching for very specific information on home design and construction techniques. His analysis revealed that the most popular pages on their web site were about costs and DIY.

It appeared that while the economy was getting tighter, people were still undertaking home improvements and renovations.
The team began to publish unbiased building cost calculators, appraisals on home design, building techniques and materials, and related products. The articles covered topics such as designing a new home, how to read plans, the process and language of building, kitchen renovation, lighting for the home, etc. They also published more specific articles on building techniques and materials such as cement rendering, use of stainless steel and fibre cement cladding.

Based on best-practice website promotion techniques they also added a blog known as 'The Architect Mother'. Their new articles on DIY building and renovating are increasing their readership by a startling 16% per month. Without any marketing or promotion, their advertising revenue is now increasing at an extraordinary 26% per month.

The company now employs a team of part-time staff which includes architects, writers, photographers, software designers, and sales and marketing professionals. Industry professionals write new articles every month. They continue to use their symbiotic skills of IT and architecture to develop interactive tools for home design and building. These include a colour selector, various building cost calculators and instructional tools.

The site is now an essential educational tool for anyone planning to undertake DIY home building or renovating.
The success story of the Home Design Directory is the result of astute scrutiny of people's behaviour and thinking laterally. It is an example of how, by using sophisticated web analysis tools, businesses can pinpoint where people are still spending their money, and can change their business accordingly. It shows that it is possible for businesses to still grow, despite challenging market conditions.

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