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Administration · 22 July 2021

Cleveland Bridge UK

Specialist trade · Darlington · North East England

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What happened

CLEVELAND BRIDGE UK LIMITED (company number 03749601), incorporated in 1999, entered administration on 22 July 2021. Its status at Companies House is now: administration.

Why it failed

Covid delayed contract starts and added costs, an estimating error erased one project's margin and steel prices rose; working capital ran short and the Saudi parent declined further funding.

  • Main reason: Covid-19
  • Delays
  • Losses on contracts
  • Cost inflation
  • Cash flow
  • Funding withdrawn
  • Group company failed

Our summary of the reasons given in the administrators' proposals. These record the administrators' and directors' account of what happened.

An administrator, a licensed insolvency practitioner, takes control of the company to try to rescue it, sell the business or get a better result for creditors than a liquidation.

Previously known as: CLEVELAND BRIDGE GROUP LIMITED, FAREACE LIMITED.

Timeline

The last accounts and payment report before the failure, then what happened, with the time between each.

  1. 30 December 2019

    Last accounts filed were made up to this date

    19 months later

  2. 22 July 2021

    Administration started

AccountsPayment reportInsolvency

Before it failed

Key figures

Turnover in its last accounts, year to Dec 2019
£48.0m
Accounts at Companies House
Loss before tax, year to Dec 2019
£457k
Accounts at Companies House
Staff, year to Dec 2019
250
Accounts at Companies House
Net assets, year to Dec 2019
£2.1m
Accounts at Companies House
Owed to unsecured creditors (estimated), as at 9 September 2021
£15.1m
of which trade creditors £8.0m. about 267 creditors. a further £2.2m owed to its lenders. Expected return to unsecured creditors: none expected
Administrators' proposals

The last accounts filed were full accounts made up to 30 December 2019, 19 months before it went into administration.

The full filing history, including any late filings, charges and director changes, is on Companies House.

Lessons learned report

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