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Nearly 30 jobs lost as NI mechanical and electrical firm goes into administration

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A mechanical and electrical sub-contractor in Londonderry which carried out work for health trusts has gone into administration with the loss of nearly 30 jobs.

Business advisory firm HNH was appointed administrator to TMC Gas Services at Skeoge Industrial State in Londonderry on June 8.

Attempts to find a buyer for the company ended in failure.

HNH said: “Following an initial appraisal of the company’s business, including efforts to seek to rescue the business as a going concern, the business has unfortunately had to cease trading with all employees being made redundant.”

The exact number of employees affected has not been disclosed by the administrators but is understood to be 28.

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The business carried out work in mechanical and electrical engineering for contractors to health trusts. 

Joint administrator James Neill said: “The post pandemic economic environment in terms of inflationary pressures and supply chain disruption, is significantly impacting firms across various sectors.

“Whilst every effort was made by the company directors ultimately due to increasing cash flow pressures the company was forced to seek the protection of an administration process.

“The joint administrators will now seek to wind down the company’s affairs in an orderly manner, including engaging with all stakeholders of the business in order to maximise realisations for the company’s creditors.”

According to its unaudited financial statements for 2020, filed at Companies House, creditors were owed £627,388 at the end of the year, up from £44,888 a year earlier. 

The statements say there were 35 employees at that time.

The business was founded in 2003 and was owned by the McCullagh family. The company’s profile on LinkedIn describes it as “a respected mechanical and electrical contractor, based in Northern Ireland, completing projects throughout the islands of Ireland and Britain”.

"We provide a professional mechanical and electrical installation and maintenance service, working in partnership with our clients.”


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