OEP UK Modules Specialist Signs New Contracts After Prepack Agreement

The company has signed contracts with Midgard and Bouygues and is set to sign a new bathroom and utility module supply agreement with Boom Construction in east London this month.

OEP Building Services went into administration at the end of last year due to 135 suppliers for £ 1.7million.

The company was hit by material cost hikes on fixed-price contracts, project delays and a slew of bad debts as regional contractors ran out of money to pay.

A directors’ report filed at Companies House revealed full details of the company’s debts and its pre-pack sale to a sister company.

OEP also owed £ 423,687 on a government-backed £ 500,000 business disruption loan the company secured in July 2020 from the Northern Powerhouse Investment Fund.

The report confirms that OEP was sold to sister company OEP UK under a pre-pack contract for £ 85,000.

The companies share two directors and Companies House records show Offsite Engineered Projects UK Ltd was formed in May 2019 and its latest filed accounts show assets of £ 33,404.

The sale saved the jobs of 88 employees who were transferred to the new owners.

OEP UK Managing Director Iain Crabtree said: “In October we made the difficult decision to hand OEP over to administration, but we did so with a plan to retain as many employees as possible. and to renew certain existing contracts in the new company. We have done this successfully and have an order book that brings us into the fourth quarter of 2022.

“In the future, we are looking to rebuild our customer base and our portfolio of projects. Our product and capabilities have not been diminished and we have streamlined the business by reducing overheads and revising salaries. The testament to the belief we have in OEP UK is that the owners put their own money into making it work. “

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