‘Lack of orders’ sends contractor on path to administration

A Hartlepool-based contractor has ceased trading and applied to enter administration.

Wearside Contractors Limited director Anthony Fallow filed a notice of intention last Friday (10 May) to appoint an administrator for the company.

Fallow confirmed to Construction News this morning that the business had ceased trading. He added that negotiations were in progress with FRP Advisory to act as administrators.

“It was down to a single factor – a lack of orders,” Fallow said.

“We tendered for a lot of work but it came crashing down in a fortnight. We couldn’t sustain another month of overheads.”

Wearside Contractors was established in 1989. The company employed 15 staff and its website, which is still live, states that it had an annual turnover of more than £1.3m.

Wearside Contractors has focused on general building contractor jobs in Durham, Tyne and Wear, and Teeside, with occasional work in Northumberland and North Yorkshire.

Clients included local government such as Seaham Town Council and social housing providers such as East Durham Homes.

Its core activities were brickwork and joinery. “Capabilities extend across domestic, commercial, industrial, ecclesiastical and house building sectors with a particular[ly] broad experience in providing facilities for disabled persons,” the firm’s website says.

Fallow said that Wearside Contractors had just one job in progress when it filed for administration, and that it was at practical completion stage.

“There’s no loose ends,” he added.

In its latest accounts, the company owed creditors £346,870 repayable within 12 months including bank loans of £22,078 (double the previous year’s £11,285). The sum owed to trade creditors also grew from £147,976 to £161,544.

Wearside Contractors reported cash at bank of £130,941, more than twice as much as the £69,737 figure reported the year before.

But its net assets by 31 March last year totalled £5,428, down from £7,611 in 2021/22.

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