Managing directors Andrew Watling and Duncan Beat of business advisory firm Quantuma have been appointed as Joint Administrators of North-East Lincolnshire based fibre optics and utilities infrastructure firm Telec Networks Limited.
Founded in 2002, with its head office in Grimsby and operations in Grimsby, Ipswich and Norwich, Telec Networks was involved in delivering broadband networks across the UK. The firm recorded a turnover of £24m in 2022.
Telec Networks entered administration on 17 August 2023 after a major contract was postponed and a change in customer payment terms resulted in a significant impact on the Company’s cash flow. The Company had no option but to cease to trade, however all staff transferred to a new employer prior to the Administration, avoiding the need for redundancies.
Andrew Watling, managing director at Quantuma, said:
“It is unfortunate that Telec Networks has been forced to cease trading and enter Administration, due to a combination of challenging circumstances that reflect the difficult trading climate for many businesses in a number of sectors, where delays in starting contracts and late payment by clients inevitably lead to a squeeze on cash, which may be terminal if not addressed.
As Joint Administrators, our immediate priority is to establish the recoverability of sums due to the Company in order to maximise asset realisations for the benefit of the Administration estate and the Company’s creditors.”
