Airedale M&E collapsed owing over £10m
Airedale Mechanical & Electrical owed over £10 million and was working on 27 uncompleted projects when it collapsed.
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The failure of the firm in July – which came about due to the group’s exposure to collapsed subsidiary Airedale Electrical Ltd along with margin pressure – resulted in 132 people losing their jobs.
An administrators’ report by KPMG, posted to Companies House, shows the company owed £8.3m to trade creditors and more than £1m to revenue and customs.
The report says Airedale M&E had been exposed to £1.7m of creditor debts incurred by its 90 per cent stake in Airedale Electrical Ltd, which went into administration in May.
The firm was also owed £9.8m, including half a million in insurance claims.
David Costley-Wood, Howard Smith and Mark Firmin said Airedale M&E had 27 unfinished projects, worth a total value of £7.2m.
Turnover was £66.4m in 2011, but dropped to £52m in 2012, and while the firm appeared to be trading profitably, it suffered margin pressure ‘as a result of well-documented pressures in the construction industry’.
“As a result of these factors there was a requirement for a large cash flow injection, which its directors were unable to source,” the report says.
Major customers began deferring payments directly to suppliers and Rexel Ltd then applied for a winding up petition on 15 June, with Speedy Asset Services as a supporting creditor.
The HQ in Yeadon, Leeds, was put on the market.
The company also owns Diamond Twin Star DA42 aeroplane, which recently had to be grounded due to a mechanical fault, but is being prepared for sale.
The firm also had a fleet of 55 vehicles.