Cramlington-based contractors Howard Russell Construction enters administration
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The company, headquartered at Apex Business Park in Annitsford, near Cramlington, appointed FRP Advisory to oversee the administration process on May 2.
This is despite the firm’s most recent accounts, filed in December 2022, reporting an increase in turnover for 2021-22 and some projects booked in advance, including for 2024.
The accounts said: “While the year saw a rise in turnover from new and existing clients, as well as larger contract values, the year did not come without its challenges.
“The perfect storm of the final few months of Covid restrictions, a boom in the industrial market, material shortages, Brexit, extreme cost increases, shortage of skilled labour, and the war in Ukraine, the result of this was an impact on margin and programme on our projects.
“Fortunately, the company's agility and cautious trading model allowed us to adapt to the challenges and minimise the impact on our business.
“While we will not be boasting record profits, we are satisfied that we are not reporting losses for the year which could have realistically been the outcome.”
According to the accounts report, an independent auditor said: “Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.”
This follows the recent collapse of North East construction firm Tolent, which was responsible for the Bedlington town centre development.