Wed, 13 Jan 2021 | ADMINISTRATION
Coventry-based Covrad Heat Transfer has fallen into administration after the pandemic caused a downturn in revenue and key customers began sourcing products from other suppliers. Raj Mittal and Tony Barrell of FRP Advisory have been appointed as joint administrators.
The company can be traced back to 1886 and specialised in the manufacture of heat transfer equipment for customers in the oil and gas, power, rail, marine and off-highway markets.
In its most recently available accounts, to the year ending December 31 2018, the firm reported losses of £2.6 million for the year on turnover of £16.8 million. At the time, its fixed assets were valued at £822,757 and current assets at £12.5 million, with total assets less liabilities standing at £5.4 million.
Joint administrator Raj Mittal said: “Despite the efforts of the directors and management, the reduction in turnover and consequential trading losses facing the company were not able to be resolved and resulted in the decision to place the business into administration.”
“Our immediate priority is now to support those affected and work closely with the redundancy payments service to ensure that employees receive every support at this difficult time.”
Following the appointment of administrators, 28 of the company’s 66 staff have been taken off furlough and made redundant, with the remaining 38 staying on support re-confirmed orders as well as the administration process.
Covrad Heat Transfer is part of the USA-based API Heat Transfer Group. The wider group is unaffected by the administration.
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