KPMG Administrators Appointed at VEL
VEL is a leading mechanical and electrical engineering firm and has been engaged in various industrial, construction and building renovation projects. However due to tough market conditions and due to collapse of a number of contracts the company went into administration with Blair Nimmo, Tony Friar and Stuart Irwin of KPMG being appointed as its administrators. The firm has ceased its operations due to which over 150 individuals lost their jobs.
The firm which is based in Broxburn is a subsidiary of the Vaughan Engineering group based in Belfast, Northern Ireland. The group continues to work normally under the control of its directors. The firm also has offices situated in New Castle and Warrington with approximately 154 employees working in all its office. Most of the staff has been made redundant with a small number of employees retained in its various offices in order to aid the execution of the various contracts of the company.
VEL achieved revenue of £50m during the year ended March 31, 2016. However, various factors like difficult market conditions and a number of disputed contracts resulted in revenue being reduced to £38m during the year ended March 31, 2017 with VEL incurring a loss of £2.4m.
The firm owed £600,000 to Carillion and had further entered into contracts amounting to £1.1m as per the reports of the press.Restructuring head at KPMG and administrator at VEL, Blair Nimmo said that the company had been a leader in its industry but was unable to cope with the current challenging circumstances. The weak financial conditions of the company left us with no choice but to make the employees redundant, however, we will be working with relevant government authorities to provide support to the effected employees. Suitable arrangements are being made for the sale of the firm’s assets along with the search of parties that might be interested in purchasing the business.