Gas Tag Ltd, the Liverpool-based tech firm responsible for tracking the work of UK gas engineers, has filed for administration.
The decision to call in administrators was taken on 14th October, due to COVID-19-related financial issues. This is likely to result in the imminent loss of 28 jobs.
Ernst & Young associate partner John Sumpton, who will oversee the administration of Gas Tag, said, “Since it was established, Gas Tag has developed its product range and built a good pipeline of customer prospects with the support of its investors.”
Gas Tag – Casualty of Covid
Mr Sumpton added, “It has been successful in securing a number of new contracts with social housing providers but has recently been negatively impacted by the COVID-19 pandemic.
“Consequently, the company has been unable to secure necessary further investment which, unfortunately, has resulted in the directors placing Gas Tag into administration.”
On their website, Gas Tag Ltd describes themselves as an award-winning technology company specialising in a plethora of gas, fire door, and property safety compliance software products and services.
The company operates within the social housing sector and had been commended for its role fighting wheeler-dealer operators.
In what will be reassuring news to interested parties, Mr Sumpton revealed that Gas Tag Ltd will continue operations whilst EY administrators explore a range of sale options.
Following the administration, the company issued an online statement, citing the pandemic as a catalyst for the company’s administration woes.
The company claimed: “The effects of COVID-19 have impacted Gas Tag Ltd significantly, which has led to the business needing to secure additional finance to continue to trade. Despite the hard work and dedication of our teams, Gas Tag Ltd was unsuccessful in securing this finance.
“Unfortunately, on October 14, 2020, this has resulted in Gas Tag Ltd being placed into administration. The administrators are supporting the business by allowing it to maintain business as usual whilst they seek a buyer.
Name change was on the cards
A month before the administration was announced, Gas Tag Ltd had changed its name to XTag to align its focus on more data-driven approaches to safety.
In their day-to-day work, Gas Tag’s technology verified the credentials of engineers, thanks to an innovative direct link to the Gas Safe Register. All completed jobs would then be uploaded to a centralised portal, allowing the data to be monitored in real-time.
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