Unsecured creditors of collapsed Armoury Demolition and Recycling have been told to expect a payout of between 32p and 63p for every pound they are owed.

The Birmingham company, which went under just before Christmas with the loss of 90 jobs, was taken into administration by the trustees of the Armoury’s director pension scheme after it experienced a “cashflow crisis”, according to a report into its demise.

Armoury was one of the biggest names in demolition in the West Midlands, with organisations including Carillion, Wilmott Dixon and the University of Reading featuring on its 2010 customer list.

The last six months had seen the Bordesley Green-based company incur “significant losses” on contracts, with a net loss of £680,000 during 2010, according to a report by the administrators Neil Money of CBA Insolvency Practitioners and Jason Groocock of Harper Cavendish, both based in Leicester.

The administrators said they could not give any certainty regarding the timing and amount of a dividend to unsecured creditors.

But they said their “best guess estimate” would be a payout between 32 and 63 per cent.

The report pointed to the debt the company ran up prior to its collapse.

“Profitability in the last couple of years has fallen,” it stated. “In particular the last six months have seen significant losses incurred on contracts.

“Whilst the business remains balance sheet solvent, largely due to many years of profitable trading, cashflow is extremely tight and is causing significant daily strain on the continued operation of the business.