Offsite construction specialist Merit has filed a notice of intention to appoint an administrator at its main trading businesses.

Court records show the notices have been lodged for Merit Holdings Ltd and Merit Health Ltd.

Last month the firm’s holding company Merit Group Services was hit by a winding-up petition from HM Revenue and Customs.

A spokesperson for Merit said: “The recent filing of a winding up petition against Merit Group Services resulted in certain customer projects experiencing delays, which in turn has placed significant additional pressure on the Group’s cashflow.

“We have therefore taken the decision to file a Notice of Intention to Appoint Administrators in order to protect the position of the business while we explore options. We remain confident that a solution to this difficult situation can be found.”

Merit is understood to be in ongoing talks with Interpath Advisory about new funding.

Latest results at Merit Holdings for the year to June 30 2024 show a turnover of £86.5m generating a pre-tax profit of £2.7m.