Steel shed specialist MTC collapses

Aaron Morby 12 years ago

Exeter steel frame building specialist Michael Thorne Construction went into administration today blaming its bank for cutting overdraft facilities.

Around 70 staff will be laid off as administrator Grant Thornton takes over at the company.

Managing director Peter Askew told the Enquirer: “We’ve had a few tough years but our pipeline of work was looking a lot better than it had been for a long time.

“Our main gripe is with our bank which cut our overdraft by around 40%.”

The firm has collapsed with more than 100 creditors left in limbo.

It is hoped some of the workforce at the firm’s Clyst St Mary base will be kept on to complete a small number of ongoing construction projects.

MTC entered a company voluntary arrangement (CVA) in April 2008, when its creditors agreed to a five-year repayment plan on £5m of debts.

These stemmed from a long-running dispute with Sir Robert McAlpine over payment for work MTC carried out as a subcontractor on the redevelopment of Princesshay.

But Askew said the firm’s current problems were largely due to the recession impacting on its workflow and the refusal of its bank to extend its credit facilities.

A  few years ago MTC ‘s turnover was around £20m but this dropped to £10m this year with staff levels contracting from around 120.

MTC’s directors have invested more of their own money in an effort to keep the company afloat but the situation grew critical when talks with the bank reached deadlock three weeks ago.

Despite losing money, MTC had a healthy order book, including a £2.5m contract for Ocean Fish in Roche, Cornwall, which will not go ahead.

The business was founded in 1969 when Michael Thorne began manufacturing farm trailers in a redundant Nissen hut.

The firm grew to become one of the region’s leading local construction firms by specialising in industrial and agricultural complexes, leisure centres and school building extensions.

Latest news

Green light for £135m Leeds twin tower resi scheme

Construction to start in New Year on 500 build-to-rent apartments
52 mins ago

Plans in for £40m surf park at former Kent colliery

Seahive surf lagoon and health resort will be built near Deal
9 hours ago

Crushed demolition worker vows to return to industry

Shannon Brasier hoping to return to construction following horror accident
9 hours ago

Mount Anvil to start 900-home North London estate rebuild

Planning approval paves way for Barnsbury Estate rebuild in Islington
8 hours ago

Green light for major laboratory campus in Cambridge

Developer BioMed to tender first building on 600,000 sq ft lab complex in the New Year
10 hours ago

Belfast firm signs the biggest work deal yet under Project Gigabit

Fibrus to hook-up rural Cumbria to lightning-fast broadband under £108m deal
8 hours ago

McLaren wins Leeds logistics park contract

Work to start imminently on warehouse complex for Firethorn Trust
1 day ago

Work restarts on £683m waste power plant after site death

Construction suspended for a week of investigations following fatality
1 day ago

Demolition starts on £135m Wigan Galleries scheme

Contractor BCEGI starts work on project to redevelop Wigan town centre
1 day ago

Amey CEO to step down following private equity buyout

Amanda Fisher to leave once business is transferred to new owners
1 day ago

New body set up to vet plant operator card schemes

Contractor trades bodies unite to tackle competency concerns over plant operator skills cards
1 day ago

Kier leads switch to hybrid battery generators

Battery units work alongside smaller generators cutting run times by nearly 60%
1 day ago

Plans in for first Leeds co-living scheme

Watkin Jones submits plan to convert old Direct Line HQ into 230 studio flats
1 day ago

Demolition worker crushed by excavator

Court hears 20-year-old woman was left with "life changing injuries"
2 days ago

Government pays £700m for 50% stake in Sizewell C

New body, Great British Nuclear, will be set up to develop pipeline of nuclear projects
2 days ago

Costain wins Heathrow Airport asset renewal deal

Firm takes early contractor involvement role in Terminal 2 baggage handling upgrade
2 days ago

Worker killed on £683m waste power plant site

Fatal collision involving heavy goods vehicle on giant north London site
3 days ago

HS2 JV shifts four Wembley Stadiums of earth in record time

EKFB team digs and hauls 15 million cu m of muck in 20 months
2 days ago

Milestone wins £300m Wiltshire highways upkeep

Ringway will hand over to Milestone in March next year
2 days ago

Low-risk business model helps Renew post record results

Renew reveals latest acquisition with £15.6m purchase of water specialist Enisca
2 days ago

London Albert Embankment hotel towers approved

Two separate hotels rising to 26 and 29 storeys approved
2 days ago

Keltbray names new director of strategic engineering

Tim Lohmann takes up newly-formed role to drive innovative engineering solutions
2 days ago

Go-ahead for £200m lithium refinery on Teesside

Work to start next year on Europe's first lithium hydroxide processing plant
3 days ago

HS2 agency workers paid the wrong wages

Payroll software problems leave workers out of pocket
3 days ago

Electric car whizz joins O’Rourke

Contractor looking to learn tech lessons from other sectors
3 days ago

Electrical contractors still confident despite staff shortages

Order books healthy but worries grow over margins
3 days ago

BAM to deliver £44m Yeovil College campus build

BAM will submit a planning application next month to start work later next year
3 days ago

Bouygues starts London 700-home council estate rebuild

Developer Linkcity seals financial close on Old Kent Road Tustin Estate job
3 days ago

Construction’s “Leading Lights” recognised

Full details of latest winners of Considerate Constructor Scheme's latest awards
3 days ago

ISG wins £600m Hertfordshire Hollywood film studio job

Holywood studio Sunset awards pre-construction contract for 90-acre studio complex in Broxbourne
6 days ago

Contractor services