NEARLY 30 jobs have been saved at an electrical installer which went into administration after suffering a "significant bad debt" from the collapsed builder Brymor Construction.

CEI Electrical Limited, based at Hedge End, was left with the "irrecoverable" debt on top of its existing problems of falling revenue and rising costs.

Insolvency practitioner SFP said it had sold some assets and goodwill of CEI Electrical Limited, which installed electrical and mechanical services for commercial and industrial buildings.

The sale saved 29 jobs, although other staff were made redundant before the administration.

CEI was set up in 1991 by owner and managing director Adam Chafe. Together with wife Colleen, he incorporated it as a limited company in 1994, and turnover peaked at £9.7million in 2019.

A statement from SFP said: “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 took professional guidance and considered various options before deciding on administration, SFP said.

David Kemp and Richard Hunt of SFP were appointed as administrators on July 19.

Mr Kemp said the sale of business and assets had saved a family business and a “significant number of essential jobs”.

He said: “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.”

Hampshire-based Brymor Construction – whose high-profile projects included Southampton’s Horizon Cruise Terminal and the Saints’ new gym – went into administration in July.

Its business and assets were sold to Winchester-based Portchester Equity in a move that saved 107 jobs but left unsecured creditors owed around £16million, which they are unlikely to see back.