Enerveo worked on a rewiring job at Bristol Temple Meads railway station. CREDIT: Enerveo
Consultation on redundancy looms for hundreds of staff in mechanical and electrical firm Enerveo’s infrastructure division after an agreed sale to an investment firm collapsed.
The firm, which SSE bought back from its former parent company in April last year, announced in its last results that it had agreed a sale of the division to Hilco Capital.
However, that sale has now fallen through, putting jobs at risk, the company confirmed to Construction News.
A statement from SSE said: “Despite best efforts, we have not been able to conclude the agreed sale of the infrastructure solutions business of Enerveo Ltd to Hilco Capital. We are now considering the next steps.”
Staff within the infrastructure solutions business have been informed that management is considering a range of options for the business, the statement said.
“However, as in all situations of this nature, there is a risk of closure and therefore redundancy.
“We understand this will be concerning for our colleagues, and we’ll be keeping them informed throughout with a view to minimising redundancies where possible by prioritising potential opportunities for the TUPE transfer of affected employees.”
On 3 October last year, Enerveo entered into a sale agreement with Hilco to dispose of its infrastructure solution business.
In its results for the year to 30 September 2024, former parent SSE said that the sale price agreed with Hilco was £1.
Enerveo’s results for the year to March 2024, released in December, said that accounting for the disposal may result in the recognition of an exceptional loss of £17.7m.
This was made up of a £15.4m write-off of working capital plus £2.3m disposal costs.
The firm employs more than 1,200 staff across its infrastructure and highways operations.
Envereo is planning to continue in highways work.
In the year to March 2024, it made a 1.7 per cent loss on a turnover of £218.4m. This loss narrowed from £10.2m reported the previous year, on a turnover of £256.7m.
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Colin Marrs