40-year-old electrical contracting business goes into liquidation

A Hull-based electrical contractor has gone into liquidation after relying on one main contract and experiencing cash flow issues from under-pricing.

The firm, KRG M & E Services based at Bridgeview Office Park, was founded in 1977 and undertook electrical contracting work in the region.

Insolvency company Wilson Field were appointed liquidators and said the firm had started work with a major contractor for the refurbishment of student and domestic accommodation- converting commercial buildings for residential use.

Reliance on this one contract increased over time and represented 80% of its turnover.

Kelly Burton and Lisa Hogg were joint liquidators. Burton said: “Under-pricing of a contract also had a severe impact on cash flow and this coupled with a downturn in work levels resulted in an accumulation of tax arrears, from which it proved unable to recover.

“Despite attempts to sell the company as a going concern, which at one time had 20 employees and a further 20 subcontractors working for it, no buyer could be found.”

Ian Maycock of Charterfields handled the asset disposals.