A royal building and decorating firm which renovated Buckingham Palace has gone out of business with the loss of more than 250 jobs.

Fairhurst Ward Abbotts, based in Dartford, called in administrators on Tuesday after suffering “severe cash flow difficulties” made worse after creditors filed a winding up petition.

The company, which was granted the Queen’s Royal Warrant of Appointment in 2000, had suffered losses of nearly £1.6 million last year according to its latest accounts.

It said this had been caused by a number of loss-making contracts, which it said had been rectified.

A handful of staff have been retained for a short period to help administrators from Begbies Traynor to divide up the firm’s assets. The business had employed 253 people.

Joint administrators Jamie Taylor and Kirstie Provan said: “The directors had been tirelessly attempting to source new external investment and funding to enable the continuation of trading.

“However despite their efforts no investment has been forthcoming within the timeframe available, and the situation was exacerbated last week by the filing of a winding-up petition by a creditor.

“Due to the nature of the business and the lack of available funding, the joint administrators’ strategy will be focussed on an orderly wind down of the business and preserving as much value as possible within the assets for the benefit of stakeholders.”

Established in 1941, the royal decorator has carried out work on Hampton Court Palace, the National Gallery, the Science Museum, National Maritime Museum and the Barbican.

Its latest client list included the V&A Museum, Kensington Palace, Windsor Castle and the Royal Household.

Its turnover reached more than £70 million in the year the end of August 2014 but the high cost of carrying out its work (£69 million) and high administrative expenses (£2.9 million) put the company in the red.