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Administration · 21 February 2023

Metnor Construction

Main contractor · Newcastle upon Tyne · North East England

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What happened

METNOR CONSTRUCTION LIMITED (company number 04424488), incorporated in 2002, entered administration on 21 February 2023. Its status at Companies House is now: liquidation.

Why it failed

Covid disruption and Brexit-related rises in labour and material costs caused losses on contracts, and a key funder withdrew future funding on 1 February 2023, creating cash flow constraints.

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  • Funding withdrawn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

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.

Timeline

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

  1. 31 December 2021

    Last accounts filed were made up to this date

    14 months later

  2. 21 February 2023

    Administration started

    2 years later

  3. 14 February 2025

    Administration ended

  4. 14 February 2025

    Creditors' voluntary liquidation started (shareholders resolved to wind up)

AccountsPayment reportInsolvency

Before it failed

Key figures

Turnover in its last accounts, year to Dec 2021
£62.6m
Accounts at Companies House
Profit before tax, year to Dec 2021
£942k
Accounts at Companies House
Staff, year to Dec 2021
65
Accounts at Companies House
Net assets, year to Dec 2021
£4.8m
Accounts at Companies House
Owed to unsecured creditors (estimated), as at 21 February 2023
£10.4m
HMRC owed £50k. Expected return to unsecured creditors: expected, amount not yet known
Administrators' proposals

The last accounts filed were full accounts made up to 31 December 2021, 14 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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