Portsmouth: Collins Electrical call in liquidators

Alexander Kinninmonth and David Green of RSM Tenon have been appointed joint liquidators of Collins Electrical.Collins Electrical Contractors, founded in 2000, was formed to deal with Portsmouth City Council and local housing maintenance contracts together with shopfitting and refurbishment work within the Portsmouth area. In recent years the company invested significant sums in staff training and purchasing equipment for solar electricity systems.
The company has now ceased trading and all staff have been made redundant.

Roger Collins, director of Collins Electrical Contractors, attributed the Company’s financial difficulties to the current economic climate with cuts being made in local government sectors and the government changes to the feed-in tariffs (the amount a household owner can claim for electricity generated for the solar electricity systems) which resulted in a significant reduction in turnover.

Kinninmonth said: “Corporate insolvencies in the construction sector have remained consistent. This is a sector which I believe will continue to suffer especially those who are dependent on the Public Sector or Government contracts as Collins Electrical Contractors were.”

“Construction is a sector which has had approximately 11,500 businesses become insolvent in the last three years. The drop in private sector contracts in 2008 made public sector contracts particularly important. However, the impact of the Compulsory Spending Review is likely to bring new casualties as the changes take effect.”

Statistics from RSM Tenon Tracker state that the construction sector was the second highest sector hit with company failures in 2011. A total of 3,625 companies went into a formal insolvency process, which was 17% of all insolvencies during 2011.

Resource:- RSM Tenon website