Somerset manufacturer slumps into administration with loss of 45 jobs

More than 40 jobs have been lost after a manufacturer based in Somerset slumped into administration.

Sterling Services Limited made architectural precast facades and worked on major construction projects across the country.

The company has now ceased trading and  Geoff Jacobs and David Standish from Interpath Advisory have been appointed joint administrators.

Established in 1997 and based in Taunton, Sterling Services Limited specialises in the design, manufacture and installation of architectural precast facades.

Sterling Services was co-founded by Joe Cefai and Kevin Lazenby who saw the opportunity to complete the manufacture of precast units for a project they were working on. Last year the firm had a turnover of more than £8m. Chris Bell took over as managing director in 2013.

In recent years, the company has worked on a large number of building projects including the City of London Academy, Battersea Power Station, the Jersey International Finance Centre and One Capital Square, Cardiff.

While the Company’s performance had been positive in recent years, the impact of wider group cashflow pressures and cross guarantees ultimately resulted in additional liabilities arising and no access to ongoing funding.

As a result the financial position declined irretrievably and Sterling Services was unable to continue to trade.

Whilst a number of funding and sale avenues were actively explored by the board ultimately the only option available was to take steps to cease trading and seek the appointment of administrators.

The majority of the company’s 45 employees have been made redundant, with one employee retained by the joint administrators for a short period to assist with certain administrative requirements.

David Standish, managing director at Interpath Advisory and joint administrator, said “It is unfortunate that such a long-established precast cladding business is no longer able to continue to trade despite the efforts of the directors.

“The joint administrators are committed to ensuring that the optimum outcome for creditors is achieved and supporting the employees at what is a difficult time for all concerned.”

Geoff Jacobs, managing director at Interpath Advisory and joint administrator, added: “Although the business has ceased to trade, it has a well-established infrastructure, a strong customer base and there may be an opportunity for parties who can move quickly to acquire the business and assets.

“ We would recommend that any parties who have an interest in the business or its assets should contact the administrators in early course.”