Long-running Metnor Construction has collapsed into administration and made all its staff redundant.
80 jobs have been lost at the north-east company, after weeks of discussions with administrators.
The company was founded in 2002 and was a principal contractor on private and public sector construction projects.
These included private residential schemes, healthcare, student housing, hotel and leisure, and commercial projects.
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The company’s owner recently hailed a significant rebound from Covid in its 2021 accounts.
Turnover increased from £48 million to £63 million and the previous year’s operating loss of £2.4 million converted to a profit of £942,000.
But the administrators said the company has faced significant financial challenges in recent months as a result of contract losses, rising input, labour, and raw material prices, and supply issues with fixed-price contracts.
All 80 employees of the company have been laid off, and the company has ceased operations.
The administrators will now concentrate on winding down the company, realising assets, and communicating with creditors.
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Steve Ross, the partner at FRP and joint administrator, said: “Rapid inflation is causing havoc on the profit margins of businesses across the economy.
“Metnor Construction was a long-established and major main North East building contractor that has delivered on significant projects across the UK but wasn’t immune to the impact of rising costs, which ultimately led to its insolvency.
“Regrettably, the business is unable to continue trading and sustain the workforce. We’re working with impacted staff to make applications to the Redundancy Payments Services and maximise recoveries from the assets.”
Metnor Construction has won numerous contracts in the private residential, care home, hotel and leisure, data centre, and retail sectors in recent years.
The company was also a former Tyneside and Northumberland company of the year.
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Three leisure centres in London, Leicestershire, and North Norfolk, data halls in Welwyn Garden City and Wembley, a PRS scheme in Rugby, and two hotels in the North East are among previous projects.
It also helped to build Corbridge Primary Care Centre, Cramlington Hospital, and Beverley Medical Centre.
Metnor Construction is part of the Metnor Group, which also includes Norstead Limited, a mechanical and electrical specialist, and Metnor Great Yarmouth, a provider of electrical services and pressure testing.
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The company’s headquarters are in Killingworth, but it also has offices in Maidenhead, Great Yarmouth, and Aberdeen, and employee numbers in the most recent accounts decreased from 188 to 169.
Source: Business Live
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