Loss-making Staffordshire contractor TNA Electrical has appointed administrators.
The Cannock firm, which reported turnover of £30.1m for the year to 31 January 2024 in its latest published accounts, named Conrad Beighton and Liz Welch of Leonard Curtis as joint administrators on 28 February 2025.
TNA Electrical was founded by brothers Andrew and Neil Jones in 2009. Its portfolio of clients included the London School of Commerce, Warwick Business School and Teva Pharmaceuticals.
The firm made a £2.1m pre-tax loss in its latest accounts, falling into the red after posting a £325,200 pre-tax profit from revenue of £27.1m the year before.
Directors noted that the main risks and uncertainties for the business “relate to material and subcontractor costs, together with a lower supply of labour”.
Leonard Curtis said the Company had “bad debts in excess of £2m during the last few years”, which administrators put down to “failures in the construction industry”.
They added that the contractor “recently suffered non-payment in relation to one of its largest contracts, creating cashflow challenges”.
“The company has also been impacted by material price inflation, most notably where projects were awarded on fixed price tenders but continued beyond the original completion date,” added Leonard Curtis in a statement.
“As a result, the business has had to absorb the substantial rise in materials costs, an issue which continues to have a significant impact across the construction sector.
“As no sale of the business will be undertaken, Leonard Curtis will manage the wind down of the company’s business in order to realise assets for the benefit of creditors.”
TNA Electrical had £8.1m due to creditors within a year of 31 January 2024, up from £6.4m 12 months earlier.
This included £399,700 in bank loans and overdrafts, more than double the previous year’s £187,400.
Long-term loan debt remained relatively stable, rising from £401,600 to £406,600.
TNA Electrical’s net liabilities were £166,500 in the latest accounts, a stark turnaround from net assets of £2.1m in January 2023.
The firm had £602,700 of cash at hand, up from £354,500 in its 2022/23 financial year.
It employed a monthly average of 25 staff, according to its latest accounts, and paid out £225,400 in dividends compared with £258,000 in the previous year.
More than three times as many construction-sector companies went under in February than in January, according to the latest monthly administrations data from Creditsafe.
The February total included another mechanical and electrical (M&E) specialist, after Birmingham-based JS Wright & Co called in FRP Advisory on 12 February.
English