Tue, 11 Jun 2024 | BUSINESS SALE
A West Midlands manufacturer of gas measurement equipment has been acquired out of administration. George Wilson Industries (GWi) dates back nearly 150 years, but fell into administration this month amid increasing financial problems.
The company was founded in 1878 and has traded from its premises in Coventry since 1904. In addition to manufacturing domestic pressure regulators for the UK energy market, the company also provided gas meter refurbishment, triage and waste management services.
Over recent months, GWi had faced mounting cash flow issues and increasing pressure from creditors, ultimately leading to the decision to place it into administration. Mark Malone and Gareth Prince of Begbies Traynor’s Birmingham office were appointed as joint administrators of the company on June 10.
The joint administrators had worked with GWi management and various stakeholders over a number of weeks prior to their appointment, in order to undertake an accelerated sale process for the company’s business and assets. Following their appointment, the joint administrators secured a sale of the business and assets to Vantage Capital, which will now trade as George Wilson Metering, in a deal that secures 26 jobs.
Joint administrator and Begbies Traynor partner Mark Malone commented: "Having reviewed the company's financial position, it was concluded that selling the business out of administration was a realistic option and would provide the best outcome for employees, suppliers, and customers by securing continuity of services.”
"This is a well-established company with a strong reputation and the level of interest received during the sale process was encouraging. We are pleased to have secured a sale that protects all jobs and ensures the continued provision of this key product and service."
In the company’s most recent accounts at Companies House, for the year to December 31 2022, it reported turnover of £8.4 million, down 27 per cent from £11.6 million a year earlier, but cut its post-tax losses from £2.9 million to just under £1.4 million.
The drop in turnover was largely attributed to “the reversion of a low margin, gas meter assembly sub-contract to our parent, following the closure of our gas meter assembly lines.” The UK gas meter assembly lines were closed as a result of the “shocks to the international economy resulting from governmental responses to the COVID-19 pandemic”, with the operations moved to Poland.
At the time, the company’s fixed assets were valued at £1.9 million and current assets at £2.5 million. However, its net liabilities totalled nearly £3.3 million, up from £1.9 million a year earlier.
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