The Enquirer understands that workers were told yesterday that the company would cease trading and administrators are now in charge of the business with 46 jobs lost on their appointment.

Surgo has been hit financially recently by a protracted payment dispute with house builder Bellway.

According to insiders Bellway brought problems to a head for Surgo when it issued a winding-up petition against the contractor over a £1.1m outstanding adjudication settlement.

Before that Surgo had been caught up in a payment dispute on a school project.

The company has been in business for nearly 100 years and specialises in contracts ranging from £3m to £20m+.

Latest accounts for the year to October 31 2022 show a turnover of £14.4m generating a pre-tax profit of £74,488.

Joint administrator Steven Ross said: “Despite the best efforts of the directors and support from the wider group, Surgo Construction has faced a number of challenges with projects in recent months that have been exacerbated by the headwinds facing the wider construction sector. This has left the directors with no choice but to place the company into administration.

“The joint administrators will now focus on assessing the position of the company in relation to ongoing work as well as supporting impacted colleagues in making claims to the Redundancy Payments Service.”