Administrators appointed at York electrical subcontractor
Thu, 21 Mar 2024 | ADMINISTRATION
A mechanical and electrical (M&E) subcontractor based in York has fallen into administration. JDL Subcontracting Ltd specialised in delivering large commercial electrical contracts, primarily within the construction industry.
The business, which was originally named, and still traded as, JDL Electrical, Plumbing & Heating, had been operating for around 17 years. Since being formed, the business split into two divisions: JDL MEP, which covered commercial projects up to £1 million and a small works department, providing plumbing, heating and electrical services for the domestic market.
The company had two offices and employed more than 40 staff across its two divisions, but had recently experienced a major downturn in work, which exacerbated its existing debt burden.
On March 12, the company posted a notice of intention to appoint administrators (NOI) and said that it had ceased trading. A statement from the company read: “Unfortunately, it is with great sadness that, JDL Electrical, Plumbing & Heating Ltd ceased trading.”
“We will be unable to complete any outstanding works and would recommend that you seek an alternative contractor to complete these works.”
Lee Lockwood and Gareth Harris of RSM Restructuring Advisory were subsequently appointed as joint administrators on March 20.
Joint administrator and RSM UK partner Lee Lockwood said: "The business has closed due to a significant downturn in work, combined with a historic debt burden, which was built up to keep the company trading during the COVID pandemic."
In its accounts for the year ending September 30 2022, the company’s fixed assets were valued at £508,793 and current assets at slightly under £1 million. However, the company’s debt burden was significant in the wake of the COVID-19 pandemic and, at that time its net liabilities amounted to £76,873.
Despite recent economic improvements, UK insolvencies are set to continue rising during 2024
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