Fri, 19 Jul 2024 | ADMINISTRATION
A manufacturer based in Worcestershire has fallen into administration, with efforts now underway to find a buyer for the business and its assets. QM Systems Limited, a subsidiary of PipeHawk Plc, was placed into administration as a result of financial difficulties.
The company is based on Hartlebury Trading Estate and provides multi-disciplinary design and manufacturing of automated production lines and test systems for the industrial sectors.
In the last financial year, QM Systems was reported to account for 65 per cent of PipeHawk’s revenue, but also reported a loss. As a result of ongoing financial challenges, the parent company appointed Matthew Haw and Diana Frangou of RSM UK Restructuring Advisory LLP as joint administrators of QM Systems on July 15.
The joint administrators are considering options for the firm and are hoping to secure a buyer for the business and its assets as a going concern. If a sale as a going concern is not possible, the joint administrators will seek to maximise realisations from the company’s assets in order to benefit creditors and support customers during the transition of existing product lines.
RSM UK Restructuring Advisory partner and joint administrator Matthew Haw commented: "Due to a number of unexpected factors, the company faced significant cashflow pressures, which resulted in the directors appointing administrators in order to protect the creditors and employees' interests."
In the company’s most recent accounts at Companies House, for the year to June 30 2023, it reported turnover of £4.18 million, up from slightly over £3 million a year earlier, while gross profits increased from £122,291 in 2022 to £914,012.
However, its post tax losses rose considerably from £486,697 to £972,847. At the time, its fixed assets were valued at £396,260 and current assets at £4.3 million, with debts meaning that its net assets amounted to £111,876.
Click here to download our free guide on finding and buying distressed businesses and assets
The company is the only manufacturer of its kind operating in the UK and benefits from high demand across various industries, including film making, education, healthcare, fabrication, and engineering. With nearly 40 years of experience, the business...
Exciting opportunity to acquire a long-standing steel fabrication business in Scotland with a strong client base and experienced team behind it.
Offered for sale is a leading Scotland-based fabrication company. Established in the early 2000s, the company has grown significantly over the past two decades, culminating in the purchase of its own multi-acre premises in 2019 to accommodate its exp...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.