Millbrook Instruments in administration

A SUBSIDIARY of Millbrook Scientific Instruments has been placed into administration, with the immediate loss of all eight staff.

Blackburn-based Millbrook Instruments designs and manufactures innovative scientific instruments that measure the properties of thin films and coatings.

It is one of two operating subsidiaries within the Millbrook Scientific Instruments group, with Wrexham-based Micro Materials Limited unaffected by the decision.

Paul Grasske, chief executive of Millbrook Scientific Instruments, told TheBusinessDesk: “It was just a victim of economic conditions with people cutting back on capital expenditure.

“Because it was high capital equipment, people were hesitating before buying it.”

The group had warned in its June trading update that order intake for the MiniSIMS instrument produced by Millbrook Instruments were down in the first quarter of the financial year and it tried to cut costs to conserve cash.

But despite cutting costs in the second quarter order intake had not picked up enough and MIL continued to be cash flow negative.

The group said that following a strategic review of the MiniSIMS business, undertaken in conjunction with financial adviser Zeus Capital, it took the decision to place the business in administration.

“The board believes that this action is in the best interests of shareholders since it will stop the cash burn associated with the MIL business, allow management to focus on the group’s other subsidiary, Micro Materials Limited and should enable the financial position of the group to be stabilised,” the group said in a statement.

Jon Newell and Kerry Bailey at PKF in Manchester have been appointed as joint administrators.