Engineering business in administration

A Weymouth-based engineering business has entered administration after struggling with short term cash flow problems.

A statement issued by the business, FGP Precision Engineering Ltd (FGP), explained that company directors had been seeking short term funding to help the company deal with the financial pressure. The team had also looked for a buyer for the business to take it forward as a solvent company, but they were unsuccessful.

As a result, administrators have been appointed to salvage as much of the company as possible. Richard Hawes and Matt Cowilish of Deloitte will “continue to trade the business while seeking a buyer for all or parts of the business as a going concern”.

Mr Hawes commented: “We are working closely with customers and employees to ensure the business has the best possible platform to secure a sale, preserve jobs and generate as much value as possible for all creditors.”

Mickey Jones, from DJ Property, a company which owns a large amount of industrial property in the region, told the Dorset Echo that he was “very surprised” to hear the news that FGP had entered administration, noting that he understood the company to have had “good customers, a good order book and a good team of people”.

FGP is an aerospace components machinist and was originally founded as a precision grinding company called Fine-grind Products in 1970.

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