Administrators aim to secure rescue for Worcestershire manufacturer
Fri, 19 Jul 2024 | ADMINISTRATION
A manufacturer based in Worcestershire has fallen into administration, with efforts now underway to find a buyer for the business and its assets. QM Systems Limited, a subsidiary of PipeHawk Plc, was placed into administration as a result of financial difficulties.
The company is based on Hartlebury Trading Estate and provides multi-disciplinary design and manufacturing of automated production lines and test systems for the industrial sectors.
In the last financial year, QM Systems was reported to account for 65 per cent of PipeHawk’s revenue, but also reported a loss. As a result of ongoing financial challenges, the parent company appointed Matthew Haw and Diana Frangou of RSM UK Restructuring Advisory LLP as joint administrators of QM Systems on July 15.
The joint administrators are considering options for the firm and are hoping to secure a buyer for the business and its assets as a going concern. If a sale as a going concern is not possible, the joint administrators will seek to maximise realisations from the company’s assets in order to benefit creditors and support customers during the transition of existing product lines.
RSM UK Restructuring Advisory partner and joint administrator Matthew Haw commented: "Due to a number of unexpected factors, the company faced significant cashflow pressures, which resulted in the directors appointing administrators in order to protect the creditors and employees' interests."
In the company’s most recent accounts at Companies House, for the year to June 30 2023, it reported turnover of £4.18 million, up from slightly over £3 million a year earlier, while gross profits increased from £122,291 in 2022 to £914,012.
However, its post tax losses rose considerably from £486,697 to £972,847. At the time, its fixed assets were valued at £396,260 and current assets at £4.3 million, with debts meaning that its net assets amounted to £111,876.
Click here to download our free guide on finding and buying distressed businesses and assets
Share this article
Latest Manufacturing Businesses for Sale
Designer of Marine Ancillary Equipment
UK Wide
Offers a comprehensive range of marine equipment, including rudders, stern gear and bearings. All products can be designed and manufactured in line with ISO 484-1 and Lloyd’s Register quality standards, assuring clients that they are receiving high-q...
Furniture Manufacturer and Retailer
Yorkshire and the Humber, UK
This sale comprises two businesses; a furniture maker and a distributor of European-sourced furniture. Together, they enjoy great success selling to B2B markets and there are many opportunities to increase their ranges, audiences and profits.
Manufacturer and Retailer of a Wide Collection of Blinds
UK Wide
Experienced and trusted manufacturer and retailer of diverse ranges of made-to-measure blinds to a loyal domestic and commercial customer base. Gently trading throughout its history the company consistently receives many inquiries due to its strong r...