Administrators for Wrekin Construction today said they had identified several financial “issues” at the company which they are investigating following its collapse.

Ernst & Young said despite the early stage of their inquiries, a number of factors were being looked at in relation to the Shifnal-based company’s accounts.

And it confirmed that when Wrekin went into administration, it was the subject of five winding up petitions and about 40 county court judgements.

The latest accounts filed by Wrekin at Companies House, to December 2007, show a pre-tax profit of £1.6 million as well as an investment, paid for in £11 million worth of shares, in a ruby known as the Gem of Tanzania.

The Wrekin Group announced it was going into administration with the loss of more than 500 jobs on Tuesday, with 420 workers immediately made redundant less than 24 hours later.

A staff of 65 have been kept on at the Lamledge Lane offices while the administration process is ongoing.

An Ernst & Young spokesman said: “While the administrator’s investigations are at an early stage, there are a number of issues which have already been identified . . .

“Amounts due to the Crown in respect of VAT and PAYE appear to exceed £3.5 million. Amounts believed to be due to Wrekin Construction in respect of government contracts exceed £2 million.

“Over the last 12 months Wrekin Group Plc has invested approximately £2m in relation to land for redevelopment and the acquisition of two businesses – Toft Johnson Construction and Watson Dallas.”

The company was bought two years ago by chairman David Unwin. Wrekin today said no-one was available to comment.