The higher amount of claims than expected is seeing hopes fade of a previously suggested 10p in the £1 payout for suppliers and subcontractors.

In the latest update to creditors, the failed builder’s administrators warn that further claims are still expected against the £87m turnover business which collapsed last July.

The previous statement of affairs estimated there were around 550 unsecured creditors with claims expected to reach £19m, including nearly £2m for former staff.

But the latest update this week makes painful reading for trade creditors.

Administrators from Evelyn Partners report received claims so far from 181 unsecured creditors total nearly £33m.

Of this amount, 22 claims, totalling £3.6m were received from creditors not included in the director’s initial statement of affairs.

Evelyn Partners said claims have exceeded the initial estimate by some £29m, mainly down to counterclaims from debtors and claims submitted by insurance companies.

“None of these claims have been considered in detail and we would expect many of them to be adjusted downwards in the coming months as further information and evidence is presented to the parties,” said administrator Adam Stephens.

But he also warned around 314 creditors, estimated to be owed £7.5m had yet to submit claims.

“At present, while we still hope that funds will be sufficient to pay a dividend to unsecured creditors, this is entirely dependent on the realisation of book debts, the final claims of the secondary preferential creditors and the final level of unsecured claims admitted,” said Stephens.

A further update is expected in May.