Begbies Traynor appointed Administrator of Kinetics Group
National building maintenance company The Kinetics Group has entered into administration.
Information Update for employees of The Kinetics Group
Partners Gary Lee, Dean Watson and Neil Mather at Begbies Traynor have been appointed Joint Administrators over the following companies as a result:
- SCP Renewable Energy Limited
- Sureway Gas Limited
- Kinetics Midlands Limited
- Kinetics South Limited
The administration is likely to affect approximately 550 staff over 5 sites.
The Kinetics Group provides building maintenance solutions to over 250,000 social housing properties, schools and public buildings across the UK.
On 9th June 2011, the shares in Sureway Gas Limited, Kinetics Midlands Limited and Kinetics South Limited were acquired by SCP Renewable Energy Limited as part of a restructuring of the Kinetics Group. Other Group companies associated with the construction industry had already failed, leaving these remaining Group companies to concentrate on gas maintenance contracts.
Since that reorganisation, the Group has suffered from confusion regarding the solvency of subsidiary companies, delays in payments from key customers and from suppliers’ refusal to continue trading with it after its credit insurance cover was removed.
Gary Lee, partner at Begbies Traynor and Joint Administrator, said:
“It is with regret that the Group has failed so soon after the restructuring exercise was carried out. A range of factors have impacted upon the Group’s cash position and uncertainty over the financial position of the Group has meant many of its contracts with customers have been placed elsewhere, curtailing the Group's ability to trade on.”
Accordingly, the vast majority of employees have had to be made redundant, with a small skeleton staff retained to finalise the affairs of the group companies.
“We are now working with customers and management to ensure that contracts can be formally handed over to ensure that continuity is afforded wherever possible and to minimise disruption.”
The Administrators are working with the Group’s customers to assist wherever possible, helping to ensure that contracts can be transferred to new service providers which may ultimately result in continued employment for employees where possible.
Further updates and information will be posted on the Begbies Traynor website.
Employees seeking further information should use the following contact details;
Telephone: Stacey Walsh 0161 837 1700 or Carmen Bowen 0208 251 3131
Gary is a Fellow of the Institute of Chartered Accountants in England and Wales and a Licensed Insolvency Practitioner with over 20 years experience in the profession.
He has worked extensively with Banks, Asset Based Lenders & Private Equity on mid market & SME assignments. He has a broad range of experience gained through a variety of assignments, working on formal insolvency appointments, informal workouts, debt negotiations and independent business reviews.