Contractor disputes put energy from waste firm in administration
ENERGOS, a Warrington-based energy from waste plants supplier has gone into administration, with the loss of 42 jobs.
Energos specialised in the supply of energy from waste plants – offering clean energy recovery from waste utilising gasification technology. The waste plants converted non-recyclable, non-hazardous waste into renewable energy.
Matthew Wild and Lindsey Cooper of RSM Restructuring Advisory were appointed joint administrators on July 11.
Latest accounts for the year to the end of March 2015 show the company made a pre-tax loss of £3.2m on a turnover of £23.6m.
The directors of Energos brought in administrators as a result of cash flow issues caused by contractual disputes with two of the company’s main contractors.
The company had four ongoing contracts for the construction of waste plants in Derby, Glasgow, Milton Keynes and the Isle of Wight. None of these are completed constructions or have reached the commissioning stage.
Energos was the main power generation technology provider to Interserve on a £146m waste to energy contract in Glasgow for Viridor.
Interserve also awarded Energos a £65m contract in Derby to supply its thermal conversion waste to energy technology.
The main contractor on the Milton Keynes and Isle of Wight plants is AmeyCespa.
Lindsey Cooper, RSM Restructuring Advisory partner and one of the joint administrators said: “It’s early days, but we are working with our professional advisors to review the status of the current contracts with a view to maximising the returns to creditors.”
