Social housing repairs division DC Group was wound-up in the High Court this week while gas installation arm Seaflame has gone into administration.

Nick Murphy, business development director at Kinetics, told Inside Housing the group had lost business because it had not submitted low bids in order to win work.

He said: “We are very disappointed for the loss to the group of DC and Seaflame.

“We did not follow the market by bidding for work at any cost.”

The winding up petition against DC Group was brought by HM Revenue & Customs who were believed to be owed £7m.

DC Group was a subsidiary providing work under a contract with Liverpool Mutual Homes which is being terminated.

Seaflame is now in the hands of administrator Zolfo Cooper and held six contracts worth around £9m.

Murphy said the contracts will be novated to new companies created as part of a restructure of the business, if clients consent.

A total of 20 companies will be replaced by three businesses called Kinetics North, Kinetics Midlands and Kinetics South.

Kinetics will focus on facilities management, gas compliance and renewable technologies but will reduce its construction work.