Fri, 18 Oct 2024 | ADMINISTRATION
A Sheffield-based engineering business has been bought of administration in a pre-pack deal saving 140 jobs.
Linbrooke Services, founded in 2002, was made up of three divisions; a railway construction business which has been saved as part of the deal and power and optical businesses which will be closed.
The business, which was a Principal Contractor for Network Rail, employed nearly 200 people. About 140 will now transfer to buyer Keltbray Infrastructure Services which is a specialist engineering contractor offering a range of services such as engineering, construction and demolition.
According to its most recent accounts for the year to March 31, 2023, Linbrooke reported a turnover of £70.6 million, up from £60.6 million the previous year. However, its loss before tax widened to £1.7 million from £205,000 the year before. It had current assets of £23.2million and creditors amounts falling due within one year of £19.3 million.
In its accounts the company highlighted the increasing budget constraints of its public sector clients, particularly the railway construction and power sectors, hitting infrastructure investments and delaying projects. This is partly down to the challenges in the UK economy as well as higher borrowing costs given interest rate hikes over recent years.
As a result of these challenges Quantuma's Richard Easterby and Chris Newell were appointed as joint administrators of Linbrooke Services on 15 October this year.
“I am delighted to have been able to achieve a sale of the company's rail operation, in very time-pressured circumstances, which secures the long term viability of the business and a substantial amount of jobs,” said Easterby. "Unfortunately not all of the business could be rescued.”
In a statement Keltbray Infrastructure Services said: "This acquisition will expand our digital capability to a new level, building on our existing specialisms in rail electrification and general rail-orientated civil engineering, with signalling, telemetry and telecom design and installation capabilities."
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