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Unsecured creditors owed more by than 拢3m by collapsed Welsh firm Jehu Group have been told they are unlikely to see any of it returned.

In an update filed to Companies House, administrator Begbies Traynor said there will be 鈥渋nsufficient funds鈥� for those firms owed a total of 拢3.2m by the company which sank into administration at the end of October after 85 years in business.

The figure includes 拢2.4m of intercompany loans while the update said employees were owed just over 拢62,000 in unpaid wages and missing holiday pay 鈥� although they are set to get their missing cash back. Jehu employed 104 people at the time of its collapse.

Two secured creditors, finance firms DBW14 and DBW3, are owed 拢758,000 and 拢3.3m respectively with the administrator saying DBW3 will be paid back in full although DBW14 will 鈥渟uffer a shortfall鈥�. HMRC, owed close to 拢47,000, has also been told it won鈥檛 be paid in full.

Begbies Traynor鈥檚 report detailed further the problems the company ran into after the covid-19 pandemic struck in March 2020 which 鈥渂rought severe disruption, followed [by] significant supply chain cost inflation. Delays in completing projects caused by the pandemic and subsequent cost increases caused a severe cashflow crisis that ultimately the group could not recover from.鈥�

Joint administrator Huw Powell previously said cost increases of 25% on fixed-price jobs had ransacked the firm鈥檚 cash reserves which before the pandemic amounted to almost 拢7m in net assets in 2019.

It said spiralling costs on fixed-price jobs 鈥渟ignificantly depleted鈥� the firm鈥檚 cash reserves last summer while its cash worries were compounded after the firm鈥檚 main bank 鈥渟ought to reduce the existing overdraft facility鈥�.

The Bridgend-based contractor and developer formally went into administration on 28 October with sister companies Jehu Project Services and Waterstone Homes also sinking.

The group had 15 live projects for registered social landlords and local authorities in Wales and the South-west at the time of its collapse.

A last-minute attempt for Jehu to keep trading with an emergency bridging loan following a meeting with funders, the Welsh government and RSLs came to nothing, the report added.