Project delays seal fate of BBC demolition contractor
A Cheshire demolition company which worked on the former BBC studios site in Manchester city centre collapsed owing unsecured creditors nearly £2m, it has emerged.
Knutsford-based Encia enjoyed rapid growth following its incorporation three years ago but projects last year were beset by delays which contributed to its collapse, according to a new report.
The company was placed under the control of administrators from Begbies Traynor in Manchester before Christmas who are now working to secure a return for creditors.
Encia began trading as a demolition and remediation contractor in November 2009 and was launched by a team with many years of experience in the sector.
The report by Begbies Traynor said that, despite the general market being in decline at the time, Encia was successful and soon began submitting tenders with developers and local authorities.
It ended 2010 with a number of projects in the pipeline and turnover of £1.9m which required further recruitment as more work came in during 2011.
Turnover grew to £2.9m by the end of that year but the marketplace became more competitive and gross margins were squeezed, the report said.
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