Somerset civil contractor G Works Construction has gone into administration, with 88 staff made redundant from a workforce of 109.
The Bridgwater-based firm, which worked on projects in the South West for major contractors including Tilbury Douglas and ISG, appointed EY-Parthenon administrators this week.
G Works, registered at Companies House as GWKS Ltd and with an address in Gloucestershire, was formed in 2006 and saw huge growth before the Covid pandemic, turning over £39m in the year to 30 June 2020, compared to just £13 million in 2016.
Its growth had stalled since then, however, with revenue falling to £29.8m in the 2021 financial year and £27.6m in the 12 months to the end of June 2022, their last accounts.
G Works made a pre-tax profit of £431,000 in 2022, up from £377,000 in 2021 despite the fall in revenue.
The latest accounts show the company employed 143 people in 2022. It owed creditors £4.8m.
EY joint managing director Lucy Winterborne said: “Rising operating costs, supply chain challenges and labor shortages combined with the Covid-19 pandemic and geopolitical disruption wider has had a significant impact on the company’s financial performance.
“Our priorities as joint administrators are to protect the interests of the company’s creditors and to support the affected employees, who will be offered appropriate advice and support.”
The company’s G Works Surfacing subsidiary is not in administration and continues to trade.
The number of construction firms entering administration is on the rise, with 42 firms collapsing in May, the highest figure since Construction news began presenting monthly data on the topic in January 2020.
Last week, main contractor Henry Construction Projects, with a turnover of £402m, became the biggest to file for administration in more than 18 months, after a year in which be affected by nine supplier liquidation orders.
