Mon, 04 Dec 2023 | ADMINISTRATION
Lontra Ltd, a manufacturer of industrial compressors, has ceased trading and fallen into administration, with a buyer now being sought for its assets. The company had a manufacturing facility in Doncaster and an office in Napton, Warwickshire.
The firm’s £17 million “smart factory” in Doncaster only began production in August 2023 as the company sought to meet growing industry requirements and bring to market its new environmentally-friendly air delivery technology for industrial settings.
The firm had developed its Blade Compressor technology, which demonstrated several innovations and environmental benefits. However, it encountered major challenges bringing its green tech product to market and also suffered as a result of constraints on both investment funding and industrial capital expenditure in the industry.
As a result of the company’s struggles, it ceased trading and Phil Pierce, Chad Griffin and Mark Hodgett of FRP Advisory were appointed as joint administrators. Upon their appointment, 45 employees were made redundant, while seven were retained to assist in the administration process.
The joint administrators are now seeking a buyer for Lontra’s assets and intellectual property. In the company’s accounts for the year ending June 30 2022, its fixed assets were valued at just over £3 million and current assets at slightly over £11 million, while net assets stood at £5.7 million.
Joint administrator and FRP partner Phil Pierce commented: "The company had an exciting proposition which had been in development for over ten years and received considerable investment. However, the inability to source sufficient further funding has necessitated the appointment of administrators.”
"Regrettably, this meant 45 staff were made redundant on appointment. We are supporting the individuals affected to file claims with the Redundancy Payments Services. We are now focused on exploring options to sell the company's assets, in particular the intellectual property, and encourage any interested parties to come forward."
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