£89m Lincs renewables firm goes under
An £89m-turnover renewables company based in Lincolnshire has entered liquidation.
Tyrone Courtman and Lee Brocklehurst from business advisory firm PKF Cooper Parry have been appointed joint liquidators to Renewables Solar (UK) and associated companies Renewables Solar (UK) Construction, Renewables Solar (UK) Commercial, and Barnby Moor.
Renewables Solar (UK), formerly Lark Energy Limited, is a privately-owned construction and development business based in Bourne. The company provided commercial and utility scale renewable energy schemes, including solar photovoltaic panels, biomass, gas powered generation and waste-to-energy plants.
Established in 2009 to explore and develop opportunities relating to shared district heating schemes, it later moved into developing small and large scale solar energy schemes.
Following the Government’s commitment to reduce CO2 emissions and the provision of subsidised tariffs arising from renewable energy sources, the solar energy industry expanded rapidly within the UK. This enabled the company to rapidly expand its business with substantial increases in revenues.
Renewables Solar (UK)’s activities evolved from providing smaller commercial installations through to acting as the principal developer and contractor, undertaking engineering, procurement and construction contract works to build large solar energy developments.
As the business grew, subsidiary companies Renewables Solar (UK) Construction and Renewables Solar (UK) Commercial were incorporated to undertake elements of the development and construction process.
Renewables Solar (UK) and its subsidiaries employed 28 people and had a turnover of £89m. All 28 staff have been made redundant as part of the creditors voluntary liquidation process.
At the time of their collapse, the companies owed a total of £48.6m.
Tyrone Courtman, partner and head of PKF Cooper Parry’s business restructuring, recovery and insolvency services team, said: “Unfortunately, despite efforts to save the business, due to a severe lack of cash there was no other option but to place the company in creditors voluntary liquidation.
“Renewables Solar (UK) Ltd was a market leader in the renewable energy sector. However, unfortunately, like many other companies in the sector, it was a victim of the changes the government made to feed-in tariffs in 2015, which had a major impact on the industry.
“According to its directors, the company also suffered significant losses on a number of major projects as a result of the engaged sub-contractors failing to complete the necessary works by the agreed deadlines. In the directors’ view, these losses, when combined with the loss of business as a result of the changes within the industry, resulted in the eventual collapse of the company.
“Regrettably, we were unable to save any of the jobs and it is unlikely that we will be able to realise sufficient assets to repay all the monies owed to the company’s creditors, but we remain hopeful that there will be a partial return to creditors.”
