Cheshire civil engineering company M Igoe Limited has gone into administration.
David Hopkins, Kerry Bailey and Lee Causer from business advisory firm BDO have been appointed as joint administrators.
It follows the Wincham-headquartered contractor filing a notice of its intention to appoint an administrator with the Companies court last week.
M Igoe employed 32 people, all of whom have been made redundant.
The business will cease to trade immediately.
Company accounts for the year ended 31 May 2022 saw turnover of £19.1 million (FY2021: £16.6 million) and profit for the year of £474,848 (FY2021: £131,241 loss).
Net assets and total equity were valued at £2.9 million (FY2021: £2.7 million).
Ordinary dividends of £254,469 were paid, but M Igoe directors did not recommend payment of a further dividend.
M Igoe said in a financial statement the “existing risk” from previous legacy contracts was still actively being managed, post-pandemic.
Insolvency Service data revealed about 4,280 construction companies in the UK became insolvent in the year to June, a 16.5 per cent increase on the previous recorded year.
“Despite considerable efforts from the management team since the start of the Covid-19 pandemic, the company has been unable to generate the level of trading profits needed to continue to trade,” said Bailey. “This is another unfortunate example of the headwinds faced by the construction and engineering sectors.”
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