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Interpath Advisory has completed the sale of Cenergist’s water division after being appointed administrator to the decarbonisation and water efficiency specialist last Friday (25 July).
Joint administrators James Lumb and Howard Smith immediately secured a buyer of the company’s water business, Control Flow Technologies Group, which was formed by members of the water management team and backed by four directors of parent company Eneraqua Technologies.
Cenergist, based in Sunderland with additional sites in London, Cardiff and Leeds, employed 144 staff in the UK and 42 overseas in the Netherlands, Spain and India. The sale includes subsidiaries in Spain, the Netherlands and India, and secures the jobs of 84 staff across the UK and abroad.
However, about 100 employees have been made redundant as administrators move to wind down the group’s energy and eco divisions.
The company had struggled with delays to large energy projects that put pressure on cash flow. Despite a marketing process to attract new investment, no solvent offers were received.
Lumb, managing director at Interpath, said: “Cenergist required significant investment following delays to certain major contracts and an adverse outcome from a contractual dispute. While a solvent sale was unfortunately not possible, we’re pleased to have secured a future for its water division, safeguarding a number of jobs.
“Quality investment projects are being commissioned but timelines are slipping. So, while businesses are winning good work, cash flow is becoming stretched.”
