Fri, 03 Sep 2021 | ADMINISTRATION
Genlec Electrical Contractors, a mechanical and electrical (M&E) firm based in Leigh, Lancashire, has fallen into administration. The business was said to have experienced financial difficulties which meant it was unable to meet its obligations.
The company provided M&E solutions in a variety of different sectors, including office space, retail, logistics and education. The firm had also worked on numerous high-profile jobs in the north of England for its main contractor, Morgan Sindall.
In its most recent set of accounts available at Companies House, covering the year to December 31 2019, the company reported holding fixed assets of £41,329, with current assets amounting to £3.45 million.
At the time, the company owed £2.4 million to creditors within one year and £550,000 to creditors due after more than one year. This left the business with total equity of £473,380, down from close to £3 million a year earlier.
The business had been pursuing a growth strategy prior to the onset of the COVID-19 pandemic, as it looked to take on larger and more complex contracts. However, after running into financial troubles, the business was forced to appoint administrators from FRP Advisory.
The joint administrators will now proceed with an orderly wind down of Genlec. All 18 of the firm’s employees have been made redundant and administrators have said they will support those affected in making claims to the Redundancy Payments Service.
The administration comes amid a challenging time for firms in the UK’s construction sector, many of which are being impacted by factors relating to COVID-19 and Brexit. It has been forecast that administrations and insolvencies may increase over the coming months as government COVID-19 support is withdrawn.
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