A recent development has seen the insolvency specialists FRP Advisory and Lucas Ross taking over the operations of Surgo Construction Limited and laying off 46 employees.
This unfortunate event follows the collapse of Metnor Construction and Tolent, both construction companies based in Newcastle and Gateshead respectively, in the past year.
On 19th February, Bellway Homes filed a winding up petition against Surgo Construction.
According to the latest financial records, Surgo Construction had a turnover of £14.4 million for the year ending 31st October 2022, with a pre-tax profit of £75,000.
Some of Surgo’s notable projects include the Bede 6th Form College, Dame Allan’s School, and the refurbishment of South Tyneside Council’s South Shields Crematorium.
Lucas Ross took to social media to explain the events leading to Surgo’s downfall.
“Surgo lost a dispute with Roundel Manufacturing Limited over the supply and installation of kitchens for a Bellway Homes development, resulting in a payment of over £180,000. This loss, along with subsequent legal actions by Bellway Homes, ultimately led to Surgo’s administration,” read the statement.
Joint administrator Stephen Lancaster from Lucas Ross shared, “The administration of Surgo serves as a stark reminder of the challenges faced by businesses in the construction industry in today’s economic climate, showcasing the industry’s unpredictable nature and the risks it entails.”
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