Administrators named at stricken engineering firm
The administrators of stricken global engineering firm which has its technical centre in the East Midlands have been confirmed.
Dan Hurd, EY
As we revealed earlier this week, Saietta Group, which makes powertrains for electric vehicles and had a major base at Silverstone Park in Northamptonshire, has called in administrators – who have now been named as Dan Hurd and Lucy Winterbourne of EY. The pair were appointed on Monday (March 4).
In February, Saietta told investors it was to undertake a strategic review, including a formal sale process, as cash started to run out.
A statement from the firm said: “Whilst the company’s cashflow model shows positive cash balances to the end of March, the company’s directors are becoming increasingly aware that certain contracted cash receipts may be withheld, therefore bringing forward the date, absent any further funding, on which the company can no longer solvently trade.”
“The board continues to believe in the quality of Saietta’s products and the compelling market opportunity and accordingly remains hopeful that a solvent solution for the company can be found.
“The company will continue to look at all financing and other strategic options available and has a number of discussions ongoing.”
The firm added: “Should the company not have made material progress with its formal sale process or with any other financing initiatives by the end of next week, the company may need to commence planning for an administration.”
Saietta is listed on the AIM market of the London Stock Exchange. When it floated in June 2021 it had a market capitalisation of £102.1m – on Monday morning (March 4) the company was worth just £944,000.
The firm was originally set up in 2008 under the name of Agility Racing to make electric motorbikes. Bosses diversified in the mid-2010s towards manufacturing axial flux motors for electric cars, with its first commercial contracts secured at the end of 2020.
The firm’s headquarters is in Oxfordshire and it also has bases in the north-east and India.
In its latest accounts, made up to the end of March 2023, Saietta posted an adjusted EBITDA loss of £14m – up from £4.4m in 2022. The firm’s bosses were positive at the time, having secured a deal with a tier 1 OEM in India.
A statement signed off by interim chief executive officer at the time, Anthony Gott, said: “Saietta is quickly positioning itself to become a prominent participant in drive train systems and technology applications across the electric vehicle segments.”
At the time, the company employed around 190 people.
EY has been contacted for a statement.
