Thu, 03 Oct 2024 | BUSINESS SALE
An engineering company based in Chesterfield has been acquired out of administration in a deal that secures 22 jobs. Hub Engineering Limited specialises in a range of services, including CNC machining, laser profiling and sheet metal forming.
The Poolsbrook-based company was established in 2016, initially operating as a relatively small firm. However, it experienced significant growth amid a surge in demand following the COVID-19 pandemic, as well as a strategic expansion into labour provision.
Despite the growth the company had experienced over recent years, Hub Engineering began encountering difficulties last year, resulting from a combination of unprofitable projects and a dispute with a customer. With concerns regarding its solvency, the company’s directors sought advice from business rescue and recovery specialists at Begbies Traynor this summer.
It subsequently appointed Craig Povey and Gareth Prince of Begbies Traynor as joint administrators on September 25 2024. On the same day, the joint administrators oversaw the pre-pack sale of the business to Hub Engineering Group Limited, saving all 22 jobs.
According to Begbies Traynor partner and joint administrator Craig Povey, the business is now well positioned to trade forward with confidence.
Povey commented: “Following a full assessment of this business and the options available, we concluded that a pre-packaged sale via administration would enable it to continue to provide its unique engineering services.”
“We’re also extremely pleased that the transaction has protected the jobs of all 22 employees and we wish them well for the future.”
In Hub Engineering’s accounts for the year to May 31 2023, its fixed assets were valued at approximately £2.2 million and current assets at around £1.3 million, with net assets standing at around £363,000.
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