MORE than 70 jobs look set to be lost as a major Bradford company prepares to go into liquidation, it has been confirmed.

PEC, a trading name of Pearl Services UK Ltd, has been part of the city’s economy for many years, offering retail and commercial space fit-outs and refurbs – including healthcare settings, schools, hotels, and more.

But Pearl Services UK Ltd, based in a distinctive PEC-branded building visible from the M606 on Commondale Way in the Euroway Industrial Estate, cited the Covid-19 pandemic, economic downturn and rising costs as reasons behind the decision.

Pearl Services UK Ltd has now ceased trading and, subject to creditors' ratification, is due to enter liquidation on Monday, October 17, 2022.

Managing director Sohan Panesar warned of “challenges in the immediate future, including a potential recession, associated reduced work opportunities and still lower margins”.

The escalating cost of fuel and what Mr Panesar described as “the risks associated with inflation on longer projects” were also mentioned.

Company behind PEC set to shut down

Bosses revealed the news to its 72 employees on Thursday afternoon.

Mr Panesar said: “The company has worked with all its employees and treated them as part of a large family, therefore as can be expected, the directors are very saddened and fully sympathise with everyone affected, especially the staff and their families.”

One member of staff told the T&A: “We’ll be getting Government redundancy. Everything’s going up and now we’ve got no job.”

Describing how it felt to hear the news, the worker said: “Like someone had just punched me in the face.

“One of the lads has been working here 21 years.

“We’ve all been busy, run off our feet. I don’t understand how the company’s not making money.

“This is affecting a lot of families in Bradford.”

In the full statement, the director said: “The company (Pearl Services UK Ltd incorporated in 2001) started 2020 well and the first three months (first quarter after Christmas) were against normal trend and were profitable. However, the Covid pandemic effectively halted nearly all ongoing projects and the company made a substantial application to the furlough scheme, due to the high level of employed staff.

“The company, in order to survive, made an application for a CBILS loan in April 2020 and again in March 2021. Clients' work either stopped or contracted substantially. The first lockdown lasted from March 23, 2020 to July 4, 2020 and was followed by a contraction in the economy and a loss of jobs, particularly in the retail sector.

“This was followed by second and third lockdowns prior to Christmas and in early 2021. The overall level of work in the second half of the year was noticeably down on the first three months of the year and the company needed to take further advantage of the furlough scheme for its direct employees over this period.

“Enquiries were, however, down and the effects on the economy were starting to be seen generally. Projects which were thought to be progressing, including two projects in Leeds and one in London, were being shelved.

“The board of directors devised a robust plan and looked to take advantage of the changing economy by providing relevant skills across emerging sectors of work e.g. DIY and healthcare supplies.

“The company maintained investment in training and accreditation, including obtaining Constructionline Gold and IS014001 Environmental Management.

“The company was also the subject of a serious cyber-attack in the summer and while prompt action was taken to deal with the attack, the company suffered a loss of nearly £40,000.

“Work progressed positively with steady progress on the majority of contracts. While this work was profitable, there were significant underlying challenges.

“Trading conditions, and in particular, the increasing costs and reducing availability of materials including fuel as well as the reducing availability of good, quality labour meant significant challenges remained, even on contracts with good levels of anticipated profit.

“Profit margins were eroded by a combination of these factors, and the lack of quality labour meant that the company was increasingly missing targets at site level and financial level.

“The directors noted other challenges in the immediate future, including a potential recession, associated reduced work opportunities and still lower margins, plus higher fuel prices and the risks associated with inflation on longer projects.

“These are all additional pressures in the medium term for a company which is not in a strong current financial position. The opportunity to cut costs and reduce overheads, as well as maintain the existing payments, was limited.

“The directors sought the advice of the company's accountants and following this meeting, the directors had no other option but to seek advice from Clough Corporate Solutions Limited, which led to the decision to cease trading.

“On October 6 sadly the company ceased trading and informed all of its 72 employees by holding a meeting.

“The company has worked with all its employees and treated them as part of a large family, therefore as can be expected, the directors are very saddened and fully sympathise with everyone affected, especially the staff and their families.”

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