80 jobs axed as two electrical contractors cease trading

Aaron Morby 10 years ago
Share

Two electrical contractors have collapsed with the loss of 80 jobs after suffering payment problems.

The biggest, Sussex-based Techelec (Brighton), entered administration at the end of December after ceasing trading weeks earlier after 46 years in business.

The mechanical and electrical contractor operated predominantly in London and Southern England and according to the last set of accounts more than doubled its turnover to £16m in the year to March 2014.

It is understood to have been working on a Watkins Jones Group’s 16-storey student halls scheme in Bournemouth and Brookfield Multiplex’s University of Kent halls of residence scheme in Canterbury.

The firm was also working on Balfour Beatty’s Royal College of Music student halls and Mount Anvil’s City Road Eagle apartment block in London.

Up to 40 jobs have been axed by the administrators.

Meanwhile in Manchester another 40 staff and subcontractor jobs have gone after local electrical contractor Des Kelly Electrical Services ceased trading on 18 December.

The firm worked as a sub-subcontractor on commercial and industrial jobs across the north west and was established 14 years ago.

Ian Jones, Partner at Insolvency Practitioners Jones Lowndes Dwyer, said: “Des Kelly Electrical Services traded very successfully as a smaller business from being established in 2000 through to 2013.

“The director has advised that it was then decided to expand the company and take on larger contracts, only to find obtaining full payment for work completed was borderline impossible.

“These payment issues had not been encountered on the smaller contracts the company had previously been involved in.

“This significantly affected both the cash flow and profitability of the company, leading to the director, Desmond Kelly, to conclude on 18 December that the company was insolvent, and had to cease trading and enter creditors voluntary liquidation.”

Latest news

Murphy hikes profit 25% to £84m as orders smash £5.4bn

Order book jumps by nearly two-thirds as firm extends global reach
2 hours ago

Cladding specialist EAG files administration notice

Sister firm of failed contractor Alucraft lodges court notice
2 hours ago

John Lewis wins battle to build four resi towers above store

Ardmore in frame for landmark £240m Ealing towers plan above new Waitrose
2 hours ago

Restructure pays-off for HG Construction

Turnover down but profit up as Building Safety Act delays schemes
1 hour ago

Mace confirmed for £100m Natural History Museum job

Construction to start imminently at Thames Valley site
20 hours ago

McAleer & Rushe starts £90m Birmingham student rooms job

Selly Oak project will transform derelict supermarket site
16 hours ago

20 firms win £577m public estate maintenance framework

Procurement Assist signs off four-year framework for cyclical works
2 hours ago

Cubby in talks over rescue restructure after civils job setback

Carlisle contractor hit by Carlisle Southern Link Road losses
1 day ago

Rayner rips up rules to get small builders building

Wildlife habitat rules and building safety levy dropped on sites up to 49 homes
1 day ago

Cladding costs recovery helps Willmott Dixon return to profit

Contractor claimed back £20m from third parties last year
1 day ago

£35m Hereford Western Bypass job to go to tender

Phase 1 tender set for September with design element included
1 day ago

GEG Capital swoops for high-voltage cable contractor APS

Inverness investor continues market expansion with deal for St Helens cable firm
1 day ago

Blackburn seeks bidders for £250m framework

Council starts tender process for major eight-year deal
1 day ago

House builders to face fines for dragging feet on site starts

New powers will let councils penalise slow developers and reclaim stalled plots
2 days ago

HS2 investigation into labour supply pay rates

Probe follows claims that self-employed workers were charged out at PAYE rates
2 days ago

Rydon narrows losses as £27m spent on fire safety repairs

Post-Grenfell work provisions increased to £19m
2 days ago

McLaren lands Boxing Academy school

Contractor starts work on East London site
2 days ago

Firms wanted for £1.5bn green housing retrofit deal

Procure Plus opens bidding for low-carbon housing upgrades framework
2 days ago

Waterloo Station revamp plan advances with new regeneration pact

15-year improvement scheme back on track with new partnership deal
2 days ago

Groundworks firm Corbyn goes under

£33m-turnover specialist now in hands of administrators
7 days ago

Home office says sorry to FP McCann after site raid

Precast concrete contractor wins damages over "entirely erroneous and unfounded allegation"
6 days ago

Race on for £60m London Gateway container yard job

Civils and M&E job up for grabs at Berth 5
6 days ago

How Construction Enquirer can boost your business

Promote your business to a vast industry audience
6 days ago

Plans in for 3m sq ft Warwickshire logistics park

Thrive Park to deliver £343m in construction investment
6 days ago

Bouygues go-ahead for South London estate rebuild

Nearly 300 flats to be build in Tustin Estate phase two
6 days ago

Court ruling opens floodgates for legacy defect claims

Barratt wins test case unlocking 30-year defect claims on sold buildings
1 week ago

Morgan Sindall wins Crystal Palace sports centre revamp

Major upgrade to iconic South London venue
7 days ago

Bowmer + Kirkland to build Manchester office block

Commercial scheme to kickstart Mayfield Park development
1 week ago

Design team named for £1bn rebuild of Airedale Hospital

Construction set to start in 2027 to 2028 on Keighley hospital replacement
1 week ago

Vistry secures 600-home Sunderland scheme

Work to start early next year on new Sheepfolds neighbourhood
1 week ago

Contractor services