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Gas services contractor embroiled in ALMO safety saga closed down
The parent company of a contractor involved with a contract at a Kent ALMO that saw hundreds of gas safety checks incomplete has shut down its gas services operations.
In a trading update last week, heating, electrical and building services provider Bilby plc said it closed P&R Installations Company’s gas servicing division in July, with its remaining “ongoing profitable building services contracts” shifted onto Purdy, another subsidiary of Bilby.
The move came as part of an ongoing review of the organisation which established the group’s loss-making activities had been isolated to “historical management failings” and two major contracts that had “materially impacted” the group.
P&R was carrying out a gas services and boiler replacement contract for Canterbury, Dover, Thanet and Folkestone & Hythe councils managed by their ALMO East Kent Housing (EKH) when issues emerged in late May.
Hundreds of gas safety checks were not done in the time required by law after P&R gave notice to terminate its contract with EKH in April, with Thanet Council accusing the contractor of failing to meet its contractual obligations to carry out checks during the notice period.
The four councils are considering “criminal or legal action” against P&R for cases of overcharging worth nearly £1.5m, while EKH’s future is under review.
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P&R is also involved in a dispute with Amey over a large building services contract for Ministry of Defence homes which was terminated by Bilby in May 2018.
Bilby said it “continues to vigorously defend its position in relation to services provided and work undertaken and invoiced in respect of these disputed contracts”, and has initiated formal resolution proceedings with both Amey and EKH in an attempt to “recover disputed money owed”.
The group expects to make earnings of between £2m and £3m for 2018/19, down from £6.3m the previous year.
According to Companies House, six directors left P&R between September and April, with three new appointments. A new chief executive, David Bullen, was hired by Bilby in April.
The firm said it “anticipates material restructuring and write-offs associated with the disputed contracts” but that its four other subsidiaries “continue to trade in line with management expectations”.
A page on Bilby’s website lists the Guinness Partnership, L&Q, Greenwich Council, Phoenix Community Housing, Paradigm Housing and Gallions Housing Association, which is part of Peabody, among P&R’s clients.
However, Inside Housing understands the list is not up to date, and Guinness and Peabody have confirmed they do not use P&R for gas services.
Greenwich Council said it has previously used P&R to install new boilers in its stock, but undertakes gas servicing, repairs and annual safety checks through its in-house team.
Update: at 14.36pm 10/10/19 following clarification from EKH, the story was updated to reflect that P&R’s contract was with the four councils as opposed to the ALMO.
