A Shropshire company called in administrators after failing to meet tax demands, it emerged today.

Heavy plant specialists Greyhound Plant Services, of Knockin, near Oswestry, was still trading today.

But 40 of the 200 workers have lost their jobs and others will go if a buyer cannot be found.

The Shropshire Star revealed yesterday that at least 30 had been made redundant.

Joint administrator John Kelly, from recovery and insolvency experts Begbies Traynor, confirmed today the figure was even higher.

He said 40 people were made redundant from the company, whose official title is Incasep Ltd, earlier this week. But he said about 160 were still employed and the company was still trading.

“Our aim is to find a buyer for the company and so protect those jobs,” he said.

“Greyhound Plant Services, as it is known as, has an excellent name in the industry both for the quality of its work and for maintenance.”

He said problems centred around two issues. Firstly, the decline in the construction industry, which had left contracts outstanding and secondly a blow over tax debt repayments.

Greyhound had come to an arrangement to pay its tax debts in regular monthly payments he said.

“The company failed to pay two payments and they asked for the full payment to be made immediately,” he said. “Negotiations brought this down to 50 per cent but this was still asking too much of the company.”

Mr Kelly said this was something that HM Revenue and Customs was doing more and more when businesses defaulted.

Jennie Kendall, from HM Revenue and Customs, said she could not comment.