SIAS Building Services goes into administration – 136 jobs lost

A total of 136 jobs have been axed at Keighley,West Yorkshire-based m&e contractor SIAS Building Services. The firm has gone into administration after experiencing “contract problems” following a period of rapid growth.

HVAC supplier Energy Technique has bought the maintenance division from the administrator for a cash consideration of £330,000, saving 28 jobs in the process. Adrian Berry, Ian Brown and Neil Matthews of accountant Deloitte have been appointed joint administrators of SIAS Building Services and the non-trading holding company SIAS Holdings.

The £35 million turnover business employed 178 staff across six locations.

Neil Matthews said:“SIAS experienced rapid growth recently and incurred losses from a number of contract problems which, combined with a high level of overheads, has impacted on cashflow and has caused breaches in its banking facilities. SIAS had also received a number of winding-up petitions. As a result, the directors had little alternative but to place SIAS and SIAS Holdings into administration.”

Following the sale of the maintenance arm, discussions are in progress with clients and main contractors on the contracting side of the business to see if there is any prospect of assigning or novating any of the ongoing contracts.

SIAS was bought by its management in 2005 when managing director Andrew Iveson and the senior management team took control of the 42-year-old firm after buying out joint managing director and founder Paul Young.

The new owners embarked on an expansion programme, including new offices in London and the Midlands.

Deloitte said the assets acquired by Energy Technique included the SIAS name, goodwill, certain maintenance contracts and associated fixed assets.

This acquisition is the first step in Energy Technique’s strategy of expanding the company’s product offering into the facilities management sector.

The SIAS maintenance division employs 28 staff providing heating, ventilation and air-conditioning maintenance services to hotels and commercial buildings in the north, Midlands and south of England, from a small head office in Crewe, Cheshire.

Unaudited turnover for the year ended 31 March amounted to £3.5 million. The business has approximately 170 planned preventive maintenance contracts providing recurring income streams and the opportunity for extra income arising from call-outs and contract works.