Thu, 31 Aug 2023 | ADMINISTRATION
Telecoms infrastructure company Telec Networks Ltd has fallen into administration and ceased trading. All of the company’s staff transferred to a new employer prior to the firm entering administration and representatives from Quantuma will now seek to maximise asset realisations for Telec’s creditors.
Quantuma managing directors Andrew Watling and Duncan Beat were appointed as joint administrators to Telec Networks Ltd on August 17 2023, after a range of challenging circumstances forced the company to enter administration.
Despite recording turnover of more than £24 million during the year to March 29 2022, the firm suffered after a major contract was postponed, while its cash flow position was further impacted by a change in customer payment terms, resulting in the appointment of administrators.
Telec Networks was formed in 2002 and was headquartered in Grimsby, with further operations in Ipswich and Norwich. The company was involved in developing UK broadband networks, providing fibre optics and utilities infrastructure services.
Commenting on the company’s administration, Quantuma managing director Andrew Watling said: "It is unfortunate that Telec Networks has been forced to cease trading and enter Administration, due to a combination of challenging circumstances that reflect the difficult trading climate for many businesses in a number of sectors, where delays in starting contracts and late payment by clients inevitably lead to a squeeze on cash, which may be terminal if not addressed.”
"As joint administrators, our immediate priority is to establish the recoverability of sums due to the company in order to maximise asset realisations for the benefit of the administration estate and the company's creditors."
In Telec’s accounts for the year to March 29 2022, its fixed assets were valued at £1.8 million and current assets at slightly over £11 million, while net assets amounted to nearly £5 million.
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