Lisburn construction company TAL enters administration
Lisburn construction firm TAL has gone into administration.
The building firm employs around 50 staff directly, as well as working with subcontractors.
But administrator James Kennedy, who was appointed on Friday, has said workers are being kept on while negotiations take place between the company and its customers.
However, work has stopped on several contracts.
The company entered administration after it was decided it did not have sufficient capital to carry on.
In the latest set of accounts for TAL Ltd, the company saw its turnover increase to £21.4m in the year to March 31, 2016.
That was up from £20.1m a year earlier.
Construction Employers Federation managing director, John Armstrong, said:
“This devastating news is a reminder, if one was needed, of the incredibly difficult circumstances that continue to face many firms within the local construction industry. Workloads are short, margins are tight and industry confidence remains incredibly low.
“Indeed, in light of the ongoing political challenges at Stormont, this news reinforces the need for the Northern Ireland Executive to pro-actively address the challenges that our industry faces.
“We hope that a positive resolution to TAL’s current administration can be found so that jobs can be saved as well as maintaining existing workloads for subcontractors and suppliers.”
According to its accounts, the company posted pre-tax profits of £11,145. A year earlier it posted profits of £245,676.
In its strategic report, the company says “the directors consider turnover, cost containment and margin as key indicators of performance in the business and will continue to focus on this going forward.”
It said: “The economic environment in which the group operates continues to be challenging, however the ongoing strategy of the business is to continue to target profitable contracts, maintain turnover and increase profit margins through cost containment.”
The firm has been involved in several large public schemes in the latest year.
The company said it recently completed two new sports pavilions for Belfast City Council.
That included a changing room pavilion at Victoria Park and another at Ballysillan Park.
Meanwhile, just last week it emerged more than 80 jobs are now at risk after a Northern Ireland aerospace firm went into administration.
Londonderry firm Schivo NI, which bought over Maydown Precision Engineering, employs 83 people in making precision components for aerospace giants such as Airbus and Boeing.
Now business advisory firm Duff & Phelps has been appointed administrators after the company became insolvent.