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
Opportunity to acquire a well-established groundworks and construction company with a strong client base and ongoing projects.
Exciting opportunity in the concrete reinforcement industry with huge growth potential.
Seeking immediate interest in the assets, goodwill, WIP, contracts, office & IT equipment of a high-end West London construction business.
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.