Scunthorpe-based construction company, Alaway Limited has fallen into administration.
Joint administrators Chris White and John Russell of P&A Group have been appointed as administrators to the firm.
Mr White said: “Despite trading successfully within the construction industry for a number of years, during 2013 Alaway Limited experienced a number of financial constraints.
“This, coupled with the level of competition within the industry, resulted in the company finding it increasingly difficult to secure larger profitable contracts.”
In its latest financial accounts for the year ending 31 October 2012, the group, which specialises in the care sector, including elderly and psychiatric buildings, reported a drop in profits.
Operating profit for the year ending 31 October 2012 was £354,964, down from £1.16m for the financial period 1 May 2010 to 31 October 2011.
Gross profit decreased to £13.8m for the year ending 31 October 2012, from £24.3m for the financial period 1 May 2010 to 31 October 2011.
The company said in its report that 2012 had been a “tough trading year” as their larger contracts had come to an end but that it had remained hopeful that the financial year ended 31 October 2013 would show a continued ability to trade with “anticipated good margins”.
Its administrators are currently reviewing the company’s contracts to see if they can be completed.