Q.A. (Weld Tech) Limited (01479089): administration
- Status
- Administration ended
- Administration began
- 2023-07-06
- Administrators
- Steven Phillip Ross, Allan David Kelly
- Administrators' firm
- FRP Advisory
- Incorporated
- 1980-02-13
- Location
- Newcastle upon Tyne
- Industry
- 25990 Manufacture of other fabricated metal products n.e.c.
Why it went into administration
- Rising costs / inflation
- Loss of a key customer, supplier or contract
- Sustained trading losses
- Competition / price pressure
From the administrators' statement
The Company is a long-established engineering and fabrication business largely servicing the oil & gas sector. The Company was incorporated on 13 February 1980 and operates from leasehold premises located at Bowes Road, Riverside Park Industrial Estate, Middlesbrough TS2 1LU.
The Company’s Directors are David Flynn, Richard Knowles and Charles Tighe. Daniel Bradley resigned as a director on 12 May 2023. In 2021 the majority shareholder became QAWT Investments Limited CQWAT”) acquiring 78% of the Company following a partial management buy-out. The remaining 22% is owned by Mr Knowles. QWAT is owned by Mr Flynn (37%), Mr Knowles (37%) and Mr Tighe (26%). The Company employed up to 47 people as at the date of the administration.
The company started trading in February 1980. It traded successfully for a number of years and continued to grow in the period to Covid (2020). In 2021, the Company invested in additional people, systems, stock and new machining in advance of starting a substantial contract. This contract was delayed against the anticipated start date which led to substantially higher costs being incurred without full revenue in this period. Whilst the Company was reimbursed for the stock, due to market changes, the customer sought a re-tender of the contract and opened up the opportunity to bid to the wider market given available capacity within competitor businesses. To remain competitive, the Company had to reduce its original pricing to secure the contract award against the other tenders. If this contract was not secured, the Company would have a significant void period whilst other contracts were pursued with a detrimental imapct to the business at that time. Management estimate that the delay and additional expense incurred in relation to contract cost over £500k which ultimately manifested in a loss for the year ended February 2022.
Administrators' statement of proposals (2023-07-22) · Companies House register