SFP completes the sale of Southampton-based CEI Electrical
Nationwide insolvency practitioner, SFP, has successfully completed the sale of certain assets and goodwill of CEI Electrical Limited – a Southampton-based company supplying electrical and mechanical installation services to commercial and industrial buildings – saving 29 jobs.
Adam Chafe, Owner and Managing Director, set up CEI as a partnership in 1991. With his wife, Colleen, CEI was incorporated as a limited company in 1994. The company’s turnover peaked at £9.7m turnover in 2019.
The company secured a number of favourable framework contracts with local authorities working as a sub-contractor to Brymor Construction on fixed price contracts and other regional and national main contractors. But as the pandemic took hold, revenues fell whilst material supply costs increased, and margins declined during 2020 and 2021.
To support its cashflow, the previously self-funded firm took Coronavirus Business Interruption Loans (CBILs). Unfortunately, despite this, matters were compounded when the company’s biggest contractor, Brymor Construction went into administration. This caused a significant bad debt to CEI which was irrecoverable, obliging the directors to make redundancies and sell assets to reduce overheads.
The Directors also took professional guidance and considered various options before deciding that Administration was the most appropriate option.
David Kemp and Richard of SFP were subsequently appointed as Administrators on 19 July 2022. Following a period of marketing and negotiations, certain business and assets of CEI Electrical Limited were sold on 29 July 2022.
David Kemp is pleased to have completed a sale which saved an established family business and a significant number of essential jobs:
“We are aware of how much the pandemic has affected businesses, and this matter in particular demonstrates how even long established and successful businesses are not immune. Seeking professional guidance can be crucial in safeguarding any business and we are pleased to have helped more than half the staff keep their jobs. We look forward to seeing CEI Electrical services be awarded new contracts in the future and to continue trading with the majority of their existing customers.”
