Thu, 07 Mar 2024 | ADMINISTRATION
Administrators from EY are exploring sale options for the business and assets of a listed Silverstone-based engineering firm. Saietta Group, along with its subsidiary Saietta Sunderland Plant, fell into administration earlier this week.
The companies specialise in the design, development and supply of complete powertrains for scooters, buses, electric vehicles and marine applications. AIM-listed Saietta Group employs 54 staff at its Silverstone HQ, while Saietta Sunderland Plant employs 33 staff at its Houghton-le-Spring facility near Sunderland.
Last month, the company said in a statement to investors that it would undertake a strategic review, including a formal sale process, as a result of its depleting cash reserves. The statement read: “Whilst the company’s cashflow model shows positive cash balances to the end of March, the company’s directors are becoming increasingly aware that certain contracted cash receipts may be withheld, therefore bringing forward the date, absent any further funding, on which the company can no longer solvently trade.”
The statement continued: “The company will continue to look at all financing and other strategic options available and has a number of discussions ongoing.”
“Should the company not have made material progress with its formal sale process or with any other financing initiatives by the end of next week, the company may need to commence planning for an administration.”
However, this process failed to produce a solvent solution, resulting in the appointment of Lucy Winterborne and Dan Hurd of EY-Parthenon’s Turnaround and Restructuring Strategy team as joint administrators of the company and its subsidiary on March 4.
In a statement, the joint administrators said: “The companies have explored various solutions to safeguard the future of the business, including a further equity raise, debt finance and a solvent take-over of the business. However, with creditor pressure increasing and no immediate solvent solution, the companies have sought the protection of an administration.”
The joint administrators added that they would now explore options for the sale of the business and assets of the companies, which include proprietary electric motor technology, plant and equipment.
In its accounts for the year to March 31 2023, Saietta Group reported turnover of £2.1 million, up from £1.3 million a year earlier, but saw its pre-tax losses widen from £11.1 million to £20.4 million. At the time, the group's total equity amounted to just under £39.7 million.
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