Fri, 15 Mar 2024 | ADMINISTRATION
Surgo Construction Limited, a construction company based in Newcastle-upon-Tyne, has fallen into administration following a period of challenging trading. The company, which had been trading for more than 100 years, had also been hit by wider pressures impacting the UK construction sector.
The company, which was based at Newcastle Business Park, was unable to meet its financial obligations as a result of these challenges. It faced a winding-up petition from Bellway Homes Limited, with action also forced by fixed charge holder White Oak UK.
FRP Advisory have been appointed as administrators to the company, which has ceased trading with the loss of 46 jobs. Joint administrators are now undertaking a review of Surgo’s head office operations to gain a full understanding of its contractual position regarding ongoing work and to maximise recoveries for creditors.
Joint administrator Steven Ross of FRP Advisory commented: "Despite the best efforts of the directors and support from the wider group, Surgo Construction has faced a number of challenges with projects in recent months that have been exacerbated by the headwinds facing the wider construction sector. This has left the directors with no choice but to place the company into administration.”
"The Joint Administrators will now focus on assessing the position of the company in relation to ongoing work as well as supporting impacted colleagues in making claims to the Redundancy Payments Service."
Surgo Construction traded as Bowey Construction Limited, part of the Bowey Group, prior to rebranding as Surgo 20 years ago. The company specialised in new build and renovation projects for both public and private sector clients.
The company was hit hard by the COVID-19 pandemic, falling to a loss of more than £420,000 in 2020, but returned to profitability the following year. In its most recent accounts, for the year ending October 31 2022, the company’s turnover fell from £15.9 million in 2021 to £14.4 million, but pre-tax profits increased from £20,820 to £75,488.
At the time, its fixed assets were valued at £1.2 million and current assets at more than £7 million, while total equity amounted to £3.3 million.
Construction has been worst affected by the UK's high insolvency rates
Click here to download our free guide on finding and buying distressed businesses and assets
Established respected business, holding valuable private and public sector client base, there being a number of key clients, some paying a retainer and from which regular repeat business is received ensuring a substantial pipeline figure.
A specialist manufacturing business of quartz and granite kitchen and bathroom worktops. It has been established in conjunction with retail premises (retail premises are also available if required). It offers a supply and fit service and is located i...
Niche window& door installer, based Devon, operating throughout the South West and further afield, includes affluent South Coast, desirable towns and villages. Operating in the quality timber sector which accounts for the majority of trade, different...
26
|
Apr
|
Major double glazing firm Everest enters administration | ADMINISTRATION
Everest, one of the largest providers of double-glazing in t...
26
|
Apr
|
Kent-based scientific consultancy sold to US firm | BUSINESS SALE
A4P Consulting Limited, a scientific consultancy company hea...
25
|
Apr
|
Ambulance services provider acquired in pre-pack deal | BUSINESS SALE
Elite Emergency Medical Services Ltd (Elite EMS), an ambulan...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.