£29m-turnover packaging firm files administration notice
Thu, 11 Jul 2024 | ADMINISTRATION
A major packaging company based in Telford has filed a notice of intention (NOI) to appoint administrators. Sirane Group says it has filed the NOI in order to protect the business as it seeks to bring in investment to secure its future.
Sirane Group specialises in new product development (NPD) and product and process development with manufacturing capacity. The group operates across four core divisions: medical and healthcare, lab supplies and services, food packaging and horticulture. Its product offerings focus on three main areas: absorbency, board, and flexible materials.
In addition to its operations in the UK, the group also has further manufacturing facilities and sites internationally in Mexico and South Africa, as well as representation in Australia and the United Arab Emirates and a global network of distributors. The group employs hundreds of staff across its operations.
A spokesperson for Sirane Group commented: “Over recent weeks, we have been working with our advisors and stakeholders to bring additional investment into the business which will put in place a stable financial platform upon which the business can move forward. To help us do this, we have taken legal steps to protect the position of the business while discussions with potential investors continue.”
The NOI was filed on July 10, with support from Squire Patton Boggs, and the group has enlisted Interpath Advisory to help it move forward.
In Sirane Limited’s most recent accounts at Companies House, for the year ending December 31 2022, the company reported turnover of £29.7 million, down from £38.5 million a year earlier. It also fell from a pre-tax profit of £9.7 million to a loss of £5.1 million.
In the director’s report attached to the accounts, director Simon Balderson said that the company had faced “a difficult business climate”, with energy and material cost increases impacting its operating margin and the end of the government’s COVID-19 testing programme affecting revenues and leaving the company with “significant labour and material legacy costs”.
At the time, the company’s fixed assets were valued at £3.8 million and current assets at £13.3 million, with net assets amounting to £8.8 million.
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