An update from administrators Begbies Traynor has revealed the scale of debts at the country’s largest roofing contractor.

Unsecured creditors are unlikely to receive a dividend for their debts leaving them holding hundreds of worthless invoices.

The report also reveals the details of a pre-pack sale of nine of Avonside’s 37 branches.

The branches were sold to Andrew Morley Business Consultancy (AMBC) for £437,500 days after the administration.

Andrew Morley was Chief Operating Office at Avonside Group and he will be working with former Avonside Commercial Development Director Vincent Hughes.

Begbies Traynor said Avonside had failed following a period of rapid expansion which saw it operate from 37 branches employing 350 staff working mainly for major house builders.

A new accounting system also led to “some inaccuracies of the financial management information and reliability of data.”

The report stated: “This led to concerns over billing which caused cash flow difficulties, working capital funding issues, and margin erosion and ultimately led to the point where the group’s financial records were considered to be materially inaccurate.”