Norson Construction Limited (04192960): administration
- Status
- Administration ended
- Administration began
- 2019-07-26
- Administrators
- Andrew Mctear, Joanna Watts
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2001-04-03
- Location
- Norwich
- Industry
- 41201 Construction of commercial buildings
Why it went into administration
- Creditor pressure / legal action
- Loss-making contracts / project overruns
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
From the administrators' statement
The Company was incorporated on 3 April 2001 as a building company that carries out construction and refurbishment of commercial and residential buildings, particularly new builds. The Company’s trading premises was located at Unit 7, The Old Counting House, Combs Tannery, Tannery Road, Stowmarket with the majority of the Company’s work being carried out by subcontractors.
In the past few years the Company’s clients experienced a drop in income which subsequently led to reduced regular payments to the Company, causing cash flow problems. Subcontractors were unable to be paid causing construction to be placed on hold. The Company tried to seek further investment elsewhere however as a result of poor cashflow no further investment could be obtained.
On 4 November 2016 the Company granted a debenture with a fixed and floating charge to James Edwards who injected further funds into the Company allowing subcontractors to be paid so construction could continue. Subsequently James Edwards was appointed as a director of the Company on 19 November 2018. Unfortunately these funds were soon depleted and the Company returned to its previous position of having no funds to enable building work to continue. Mr Edwards resigned as director on 27 June 2019.
Administrators' statement of proposals (2019-09-19) · Companies House register