Tue, 17 Sep 2024 | BUSINESS SALE
A heavy engineering business based in Workington, Cumbria has been acquired out of administration in a deal that secures 160 jobs. TSP Engineering has been trading since 1945, working across sectors including steelmaking, construction, defence, oil and gas, nuclear and renewables.
The company has experienced increasing financial pressure and debt over the past 18 months, as a result of tough market conditions. The firm had also reportedly suffered from a loss of staff due to retirement, the COVID-19 pandemic and “historic issues from lack of investment by previous owners”.
The business had previously been acquired in 2020 by Jingye Steel, with the Chinese firm subsequently placing it into administration in March 2022, when it was rescued by Silecroft-based GMET Engineering.
Iain Nairn and Sean Williams of Leonard Curtis were subsequently appointed as joint administrators of the company and successfully concluded a sale of the business to Workington Engineering.
The deal secures all 160 jobs at TSP Engineering and ensures that customer contracts, including planned work and work that is already under way, can continue to be delivered without delay.
A spokesperson for the company stated that TSP Engineering was “a great business that has been held back by historic lack of investment” but is now “in a position to move forward on a positive footing.”
They continued: “The support from Leonard Curtis has allowed us to protect value for creditors and ensure that we can keep our excellent team employed into the future. Having done that, we have raised capital to support the growth of the company over the coming years.”
“We hope that further investment will be forthcoming from both public and private sources, allowing us to continue to play a significant role in the local area and take advantage of excellent opportunities in the market locally, nationally and internationally.”
In the year to the end of March 31 2023, TSP Engineering reported turnover of £13.5 million, compared to £18.75 million in the period from January 1 2021 to March 31 2022, while cutting its pre-tax losses from nearly £1.1 million to approximately £53,000.
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