Mon, 18 Dec 2023 | ADMINISTRATION
Shipham Valves Limited, one of Humber’s longest-standing manufacturing firms, has fallen into administration. The Brough-based company, which dates back to the 18th century shipping industry, fell into administration as a result of numerous adverse factors.
The company, which divested from Finnish group Wärtsilä three years ago to regain its well-known name under the ownership of Evergreen Capital, has reportedly been hit by cash flow issues and supply chain disruption.
As a result, the company’s directors have appointed administrators from Mazars LLP, who are now seeking a buyer for the firm. 39 of the company’s 71 staff have been made redundant upon the appointment of administrators.
The firm specialised in building valves for marine and naval customers, as well as the energy sector. It was originally founded in 1798 as a brass foundry supplying valves, cocks, bells, gauges and whistles for the Humber fishing and commercial shipping fleet and began manufacturing components for naval vessels during the 1930s.
In its most recent accounts, for 2021, the company reported turnover of £5.9 million and operating losses of £4.9 million. At the time, the company’s directors said it had a healthy order book, but was readjusting following its divestment from Wärtsilä. The company had been standardising and streamlining its product portfolio as it sought to improve efficiency and profitability in order to boost its market position.
Joint administrator Patrick Lannagan said: "The company has experienced cash flow difficulties resulting from global supply chain issues. These cash flow difficulties have led the directors to take the difficult decision to place the company into administration.”
"The company has a strong skill set in manufacturing complimented by a longstanding world recognised brand name and continues to trade while a buyer for the business is sought by the administrators."
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