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North-east civils firm goes into administration

Middlesbrough-based civil engineering contractor J Hughes Construction has gone into administration.

The firm went into administration on 20 November, with Baker Tilly in Sunderland handling the case.

The company had a turnover of £27.9m in the period from 1 May 2011 to 31 October 2012 and a pre-tax profit of £18,291, according to its accounts.

Its revenues for the year ending 30 April 2011 were £23.5m and pre-tax profits were £483,959.

The accounts said turnover had fallen on a like-for-like basis by 21 per cent and gross margin had dropped from 13.1 per cent to 6.9 per cent.

The firm changed ownership in spring 2011 with one director, John Patrick Hughes, standing down at the end of 2011 and the other, Donal James Hughes, continuing as the sole director.

The accounts said the company had implemented tighter controls on invoicing after the change of ownership and had reduced its bad or doubtful debts as a result.

The improved controls would enable it to post a credit of £1.6m to its profit and loss account, the accounts said.

It employed an average of 99 people in the period between 1 May 2011 to 31 October 2012.

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