Astec collapse leaves creditors 拢12m out of pocket

Failed cladding group Astec was wound up after embarking on an expansion drive, leaving its creditors 拢12m out of pocket, the latest creditors鈥� report reveals.

Three of Astec鈥檚 businesses - Astec Group, Astec Projects and Concept Design - all ceased trading on April 11th, according to the report from administrators Deloitte.

Astec built up a position as a leading UK provider of cladding since launching in 1993.

The group made a profit of 拢615,485 on a turnover of 拢30.5m in the year ending December 2012, up from 拢140,596 in the previous year.  

In light of the number of contract opportunities, Astec鈥檚 directors decided to further expand the business, posting sales of 拢45m in 2013.

However the group was unable to fund the 鈥渁dditional working capital requirements of the enlarged business鈥�, Deloitte said.

Earlier this year, according to Deloitte, the directors concluded that as Astec was unable to pay its debts, the group should be placed in administration.

The company immediately made 65 redundancies. The remaining 20 employees were laid off a fortnight later after efforts to find a buyer for the business had been exhausted.

Deloitte鈥檚 administrator Richard Hawes has said that it is unlikely that the company鈥檚 unsecured creditors will be paid. According to the report, Astec鈥檚 sub-contractors are owed 拢1.5m and trade creditors 拢5.8m.

Astec projects included a cladding job for Ascot Racecourse (pictured).

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