Jobs lost at turbines business as administrators called in
Over 20 people have lost their jobs at a provider of maintenance, repair and overhaul for industrial gas turbines after administrators were called into to the firm.
James Clark and Howard Smith from Interpath Advisory were appointed joint administrators of Turbine Efficiency (TEL) and Turbine Efficiency Group (TEG) on 16 November.
Operating from a leasehold facility in Witham St Hughes in Lincolnshire and incorporated in January 2000, TEL provides services to the utilities, oil and gas, power generation, and industrial process support sectors.
TEG was incorporated in December 2011 and operated as an intermediate holding company, and was the 100% shareholder of TEL.
Turnover had been dropping at the firm for some time. Revenue in the 15 months ended 31 March 2020 was £20.3m, while in the 12 months ended 31 March 2021 it was down to £16.9m.
The administrators said that TEL suffered “signficant capital constraints” in its FY21 as a result of customers reducing capital expenditure projects following the impact of COVID-19. The directors undertook an early options process to try to secure new investment for the business, but with no offers for the business and assets on the table, the directors took the decision to place the companies into administration.
On appointment, the companies had 39 employees, of which 17 have been retained to finish outstanding items of work in progress, assist with asset realisations and the wind down of the business. The remaining 22 employees were made redundant upon appointment.
James Clark, managing director at Interpath and joint administrator, said: “As we commence an orderly wind-down of the business, our immediate priority is to provide those employees impacted by redundancy with the support and assistance they need to make their claims to the Redundancy Payments Office.”
