Turbines firm owed £10m to creditors as it slumped into administration
A provider of maintenance, repair and overhaul for industrial gas turbines owed almost £10m to creditors when it fell into administration last month (November).
James Clark and Howard Smith from Interpath Advisory were appointed joint administrators of Turbine Efficiency (TEL) and Turbine Efficiency Group (TEG) on 16 November. Over 20 people lost their jobs at the firm.
Operating from a leasehold facility in Witham St Hughes in Lincolnshire and incorporated in January 2000, TEL provided services to the utilities, oil and gas, power generation, and industrial process support sectors.
Documents seen by TheBusinessDesk.com show that Turbine Efficiency Group owes £9,994,511 to creditors at the time it called Interpath in.
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 “significant 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.