Our Financial Position

PUBLISHED 14th MARCH, 2024

Dear current and future customers,  

We’d like to address concerns about the operational viability of the building industry, specifically ours, in the current economic conditions. 

Several major construction businesses have gone into either liquidation or voluntary administration in previous months.  

We empathise with these businesses' customers, staff, trade partners and owners.  

To provide certainty and clarity for our current and future customers, we have compiled this document to help you understand our current financial position and what we are doing to manage and ease your concerns.  

Our Business Model   

There are two directors of the company (Turnkey Creations) and four shareholders. The directors are Nick Constable and Francis Walmsley.  

Turnkey Creations has been the sole company we have owned and operated since starting our business Turnkey Decks, which evolved into Canberra Granny Flat Builders and Fixed Price Extensions. The company has been operating since 2013.  

We deliberately specialise in specific geographic and demographic markets. 

1. We only operate within Canberra - so we can specialise in understanding the complex and ever-changing legislation.   

2. We only work directly with consumers - We don't work with other businesses or governments- reducing the vulnerability of drawn-out cashflow issues.  

3. We have no speculative buildings, property developments, or projects privately or within the business risk the viability of our operations. Builders using customers' funds and deposits to cashflow their projects often get caught out when the housing and property market changes, as in 2022 and 2023. 

4. We specialise in extensions and new builds for projects under 120 sqm - we have completed about 300 residential projects in Canberra. 

5. We correctly price our projects upfront, provide a fixed price agreement, and manage the process. At first glance, our projects are of higher value than our competitors. We have always maintained the price of a building agreement, and we have never increased or changed the price of a customer agreement based on industry-wide labour or material price increases. 

We have maintained the same locally based trade partners for the past decade and paid them within ten days of invoicing and at or above market.  

Providing You Confidence About Operational Viability  

When you sign a fixed-price agreement, we will not ask you to pay a 10% or 20% upfront deposit as most builders do.  

You will be accountable for 10%-12% of the agreement's value while we manage and meet the costs of planning and development approvals, but you will not need to pay that upfront.   

We do not use your deposit to keep our business afloat - you will simply be liable for the deposit and planning payment if you cancel the project.  

You will start paying when the onsite building commences and as project milestones are completed.  

Statement of Our Financial Viability.  

Our company accountant (CPA) has prepared a current financial position statement.

Our Home Warranty insurer representative, Bree Parsons, can be contacted directly for clients looking to work with us at bree.parsons@aon.com  

In summary:  

1. We have no loans against the company.  

2. We have no active overdrafts  

3. Our Instalment Activity Statement IAS - BAS and PAYG are up to date with the ATO  

4. Our receivables (people who owe us) outweigh our creditors (people we owe) 

5. We have sufficient cash reserves to manage the business for a sustained period  

6. We have no capital tied up in our development projects  

7. We have 45 signed building agreements we are to commence work on within the next six months  

We encourage you to contact our office if you are considering an extension or secondary dwelling in Canberra.  

If you have engaged a builder who has recently gone into administration to create a design for you and you have paid a deposit upfront, we will give you a credit to complete your design complementary with us (Canberra only).   

We know that some clients have paid over $10,000 upfront to manage initial design and planning. Please call Frank Walmsley to discuss options - 0400446605  

Post-COVID, the most significant challenge we face in the building industry in Canberra is the relentless implementation of new legislation and added compliance that seems to be implemented and revised regularly (literally weekly). 

We hope this will settle, so we, as an industry, can focus on serving our customers with confidence and clarity.  

On behalf of our business, we wish you all the best in 2024 and hope you reach out to discuss your project with our team. 

Frank Walmsley  

Client Service Manager  

0400446605  

clientservices@cgfb.com.au