The company said in a statement: “In the course of refocusing the business a number of administrative changes need to be made.

“Markey Builders Gloucester will cease to trade and Markey Construction, the name that we trade under and are known for, will be incorporated.”

The move follows a number of tough years for the company which employs more than 200 people.

Latest results for Markey Builders (Gloucester) show the firm made a pre-tax loss of £1.1m on a turnover of £27m for the year to March 31 2014.

The firm said: “The environment that Markey Construction operates in has for a number of years been challenging.

“Margins have been and continue to be thin, with competition intense.

“The construction industry has also suffered from skill and material shortages as work volumes have returned to pre-recession levels.

“Recognising this environment the Markey Group has taken the decision to re-focus Markey Construction predominantly on projects for the group and selected clients and investors.

“This work will play to the strengths of the current Markey Construction team and will also allow us to benefit from synergies such as the work the group is doing in the care and student sectors.”

Tony Markey, Director of the Markey Group said: “The new direction that we are setting for Markey Construction will provide job security for current employees and will allow the Group to move forward with confidence, investing and growing other parts of the Group”.

The move has caused concern among subcontractors.

One told the Enquirer: “We don’t really know exactly what is going on here or the reasons behind this.”