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Administration · 28 February 2023

Norstead

Specialist trade · Newcastle upon Tyne · North East England

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What happened

NORSTEAD LIMITED (company number 03596379), incorporated in 1998, entered administration on 28 February 2023. Its status at Companies House is now: liquidation.

Why it failed

The group's main funder withdrew funding and customer Metnor Construction failed, leaving a bond guarantee; cost rises and Covid-19 had hurt contracts, and a rescue sale fell through.

  • Main reason: Funding withdrawn
  • Group company failed
  • Clients not paying or failing
  • Cost inflation
  • Losses on contracts
  • Covid-19
  • Sale or investment failed
  • 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.

Previously known as: METNOR GROUP LIMITED, METNOR GROUP PLC.

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. 28 February 2023

    Administration started

    12 months later

  3. 1 February 2024

    Administration ended

  4. 1 February 2024

    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
£20.3m
Accounts at Companies House
Profit before tax, year to Dec 2021
£74k
Accounts at Companies House
Staff, year to Dec 2021
61
Accounts at Companies House
Net assets, year to Dec 2021
£3.7m
Accounts at Companies House
Owed to unsecured creditors (estimated), as at 28 February 2023
£7.2m
of which trade creditors £5.3m. 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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