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Four parties circling £40m London contractor Harry Neal

Four firms are looking to buy London-based construction firm Harry Neal which is on the verge of going into administration.

Directors of the £40 million-turnover contractor have appointed accountants UHY Hacker Young to assist in placing the company into administration on the 18 February.

Buyers are being sought for the firm, which currently has 10 contracts on the go each worth up to £10 million.

UHY Hacker Young partner Peter Kubik said: “There are four seriously interested parties. There is currently no formal insolvency procedure in place at present. It may never go into liquidation.”

Harry Neal which carries out the majority of its work for wealthy individuals within the M25 is understood to have become a victim of the recession with one of its overseas customers going bust.

Construction credit reference agency Top Service said it had been monitoring Harry Neal’s situation closely for up to six months.

Directors of the company are understood to have held a series of meetings on Wednesday to discuss its future after a winding-up petition was issued against it on 27 January.

UHY Hacker Young was appointed as receivers today.

Harry Neal’s most recent accounts for the year to 31 December 2008 show turnover of £40 million, up from £38.8 million the previous year.

Pre-tax profit of £31,500 was reported compared with £320,000 the prior year.

Staff numbers increased from 128 to 143.