The south east demolition contractor hopes to reach agreement with creditors to repay 23.6p in the pound over a five-year period on debts of around £3.5m, according to website Demolition News.

Business rescue specialist Begbies Traynor said the CVA will allow Lee Demolition to continue trading under its current name while the debts are paid off.

Worst hit among creditors are likely to be NRC Plant, which has debts of £98,000, City Security Guards which is owed £68,000, and Ashtead Plant which is out to the tune of £20,000.

Also listed among creditors is Atlas Demolition which is owed £4,200.

Begbies Traynor said that Lee Demolition profits slid from £1m on a turnover of £11m in 2011 to just £300,000 from almost doubled turnover of £19m last year.

More recently the firm has been hit be several loss-making jobs. In proposal documents it said:”The directors feel that they have become remote from the company’s operational activities and that the cost base has grown significantly as a result of the vast increase in turnover.

“The losses incurred recently are believed to be unusual and have been caused by inaccurate costing and poor project management.”