A total of 80 jobs have been lost after administrators were officially appointed at long-standing North East firm Metnor Construction.
Steven Ross and Allan Kelly of specialist business advisory firm FRP were appointed as joint administrators to the Killingworth construction and engineering firm on Tuesday, following weeks of discussion. The firm – a former Tyneside and Northumberland company of the year – was founded in 2002 and was a principal contractor on private and public sector construction projects, including private residential schemes, healthcare, student accommodation, hotel and leisure, and commercial projects.
The firm’s parent group had recently hailed a significant bounceback from Covid in most recent accounts covering 2021 with turnover up from £48m to £63m and the previous year’s operating loss of £2.4m was converted to profit of £942,000. But the administrators said the business suffered significant financial challenges in recent months following contract losses and the pressure on profit margins from rising input, labour and raw material prices and supply issues against fixed-price contracts.
