Construction and Infrastructure
Impact of Covid-19 on construction firm confirmed as administration
We can now conform one of Gloucestershire’s most innovative firms serving the construction sector has indeed entered administration.
It is still not clear-cut exactly what the bigger picture is, but yesterday we felt confident enough to speculate that the Staverton-based Ilec-Imec business had closed.
It did not take any great detective work to come to that conclusion, with multiple social media posts from staff members and the odd senior management talking about redundancy, but the firm was still listed as trading and no one was contactable.
The Raikes Journal can now confirm administration has begun – but some confusion continues as Ilec-Imec is two businesses and we have only been able to track down an administrator for one. And the tale of how devastating Covid-19 has been is more shocking that we thought.
Julian Moules, a senior case supervisor for Harrisons, a specialist in handling such matters with offices I Manchester and Reading, was able to confirm: "I must advise that Ilec Limited was placed into administration on 7 July 2020 but that no further information is currently available.”
Which means we do not know what is afoot with Imec, if anything as the firm has filed only accounts for a formant company at Companies House. And then there is the overseas operations, more of which shortly.
The Raikes Journal was told 44 staff at Ilec-Imec were told not to report for work on Monday gone (July 6).
If that is not sad enough, a look at Ilec’s last company accounts filed in December 2019 show a company not afraid to work on projects worth more than £150 million, buffeted by Brexit and facing delays on two or three major projects, nevertheless confident of the future.
Strong sales and a turnover this year of £20 million was predicted for the firm, whose core business was “the design, development, construction and installation of all MEP services in high rise, mixed use developments”.
Such work included CAT 1 and 2 offices, commercial units, hotels, care homes, apartments, student accommodation.
It has also “refurbished its own premises and invested in new IT infrastructure which gave the company "a range of bespoke MEP design and construction management software which have increased productivity and process across the business”.
There has also been “continued investment” in Thermarestor, its “multiple award winning innovative electrical fire prevention products” which was opening up overseas markets and creating working partnerships “throughout Latin America and across Europe”.
“2020 is on target to rapidly expand, along with Ilec's plans for its delivery in different marketplaces around the world".
“Directors remain positive and focused on its core business of providing quality electrical and mechanical services to the construction industry and are confident unchartered territory of "after Brexit" will not deter this path.”
No one, of course, had factored in the impact of a world-wide pandemic.