Around £13.4m of this sum is owed to subcontractors and suppliers, with another £5m expected to be owed on claims on contract debts.

A further £1.36m is also owed in tax and VAT.

The latest administrator’s report from Begbies Traynor reveals that the firm’s problems started after a mix-up caused by introducing new accounting systems in 2012 and 2013.

A new finance director joined the company last October and launched a financial review, which saw an expected profit for March 2014 turn into a loss of £1.6m.

Accounts were submitted to Companies House in time, but delays posting them on the public records system saw the firm marked as a late return.

This unnerved credit scoring agencies, which gave FWA a nil credit rating resulting in insurance agencies pulling credit insurance.

This contributed to funds drying up and triggered a winding up petition from a nervous creditor owed £225,000, which FWA was unable to defend.

FWA, which was established back in 1941, held the royal warrant for building and decorating services to the Queen.

It built up a countrywide reputation for delivering renovation and refurbishment of historic properties, plus luxury new build projects.

As well as the Royal Palaces, FWA worked on some of the UK’s finest historic buildings including the National Galley, the V&A and Chatsworth House.

Kevin Brush – managing director of Fairhurst Ward Abbotts,

In 2006, ex-surveyor Kevin Brush (above) bought a majority stake in the then £10m turnover firm and launched FWA on an expansion drive as managing director.

In the last five years, the builder grew strongly increasing turnover from £13.5m to £67m.