Customer's difficulties forced Belfast firm AirconMech into administration
A Belfast-based ventilation systems firm went bust owing £1.4m following the administration of a key customer, it has emerged.
Staff at AirconMech UK, which had an address at BDO in Belfast, were made redundant after it went into administration on October 30 last year.
The company, which had some of the same directors as AirconMech Ireland, was working on 13 construction contracts around the UK with a book value of £656,500 – though the value to be realised from those was likely to be around one-fifth of that.
A statement of affairs filed this month by administrators Keenan CF also said: "The construction sector has come under significant pressure with the general economic downturn during the recent years. As a result the company faced pressure on margins, and incurred significant bad debt when a customer entered administration on October 11, 2013. This caused severe liquidity pressure for the company."
The firm was profitable with a turnover of £5.2m and pre-tax profit of £30,603 in the year to the end of December 2012, the report shows.
But by the time the company went into administration, it owned £1.4m to creditors.
The administrators said there was no indication of the prospects or value of any possible dividend. "This is due to various uncertainties around the valuation of the company's book debts," they said.
An employee at the Wexford HQ of AirconMech Ireland yesterday said it remained in business and was "thriving".