Mon, 11 Apr 2022 | ADMINISTRATION
Doncaster-based mechanical and electrical contractor Mechanical Facilities Services Ltd has gone into administration and ceased trading following a contract dispute, with purchasers now being sought for the company’s assets.
Howard Smith and Chris Pole of Interpath Advisory have been appointed as joint administrators to the company and will now seek buyers for assets including, but not limited to, freehold property, tooling and office equipment, vehicles and book debts.
Founded in 2008, Mechanical Facilities Services traded from its headquarters in Beckingham, Doncaster. In addition, the company operated from five leasehold premises throughout the UK, and also traded internationally through sister companies in Germany and Ireland.
The company, which had a workforce of 75 employees, provided mechanical and electrical engineering services, with the bulk of its work in recent years coming as a sub-contractor on large warehousing unit builds.
In the company’s most recent financial reports, for the year ending June 30 2020, it recorded turnover of £49.7 million, up from £28.9 million a year earlier. However, its post-tax profits fell from almost £2 million in 2019 to £804,336 a year later.
Despite the company’s strong turnover, administrators said that the business had suffered increasing cashflow pressure over recent weeks due to a dispute on a large contract. While administrators were unable to provide specific details on the contract, a resolution could not be reached on the dispute, leading directors to cease trading and place the firm into administration.
Joint administrator and Interpath Advisory Managing Director Howard Smith said: "Our immediate priority is to assist those employees who have been made redundant in making claims to the Redundancy Payments Service. We will also be seeking purchasers for the company’s assets, including its properties, plant, machinery and vehicles."
In its 2020 financial reports, Mechanical Facilities Services’ fixed assets stood at £538,172, while current assets were valued at £23.4 million. The company’s net assets at the time amounted to £1.6 million.
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