The collapse of construction giant Carillion and a million-pound financial dispute have been blamed for the failure of a flooring company.

Fifty-five employees were made redundant when Polydeck Group, which had a base at Walsingham, entered administration on May 25.

Administrators from FRP Advisory blamed a 'tailwind' from the high-profile collapse of Carillion in January as the reason for the administration, adding its cash position led to the immediate closure of the business.

Polydeck, which had its headquarters in Chippenham and other sites in Peterborough, Warwickshire and Edinburgh, had also been in a dispute with Balfour Beatty over work at RAF Marham, reported to be worth £1.7m.

The administrators added that this had contributed to its cashflow issues.

Balfour Beatty have been contacted for comment but were unable to do so at the time of publishing.

Joint administrator Andrew Sheridan said: 'Polydeck Group is sadly another casualty caught in the tailwind of the Carillion collapse.

'With many in the construction sector delaying payments to shore up their own cash positions, smaller contractors are feeling the pinch. Against a backdrop of tighter industry margins, delayed payments ultimately resulted in Polydeck running out of cash.'

FRP Advisory said it was supporting affected employees and working to recover money and assets on behalf of creditors.

In its latest set of accounts, filed at Companies House, Polydeck reported turnover of £12.5m with pre-tax profits of £425,591.

Carillion's collapse has seen more than 2,300 people lose their jobs with firms and lenders also missing out in liabilities £6.9bn which was owed by the group.

It comes at a tough time for the construction industry with the IHS Markit/CIPS UK Construction PMI index remaining static in May at 52.5, with a score above 50 showing positive growth. New business growth had slipped into decline, the report said.

Sam Teague, economist at IHS Markit, said: 'With new order books deteriorating and cost pressures picking back up, it's not surprising to see construction firms taking a dimmer view of prospects and pulling-back on hiring, all of which makes for a shaky-looking outlook.'