Hundreds of jobs lost as Gloucestershire engineering firm slumps into administration

A Gloucestershire engineering firm has slumped into administration with the loss of hundreds of jobs.

The assets and property of Alderley Plc which owned Alderley Systems Ltd (ASL) and Specialised Management Services Limited (SMS) are now being managed by the joint administrators and an insolvency process launched.

The combined businesses are thought to have employed more than 450 staff.

Alistair Wardell, Richard Lewis and Rob Parker from Grant Thornton have been appointed as joint administrators from Grant Thronton.

A spokesperson for the administrators at Grant Thornton UK LLP said: “I can confirm that Alistair Wardell, Richard Lewis and Rob Parker of Grant Thornton UK LLP have been appointed as joint administrators of Alderley Plc (“PLC”), Specialised Management Services Limited (“SMS”) and Alderley Systems Limited (“ASL”) (together ‘the Companies’) on 24 July 2024. The companies operated in the oil and gas markets where they designed, manufactured, and serviced control systems.

“The companies faced difficult trading in recent months and, despite exploring options to secure the companies’ future, the directors concluded that the best option is for the companies to enter an insolvency process.

“The companies have ceased to trade, and the administrators will now undertake an assessment of the companies’ financial position and continue to carry out their statutory obligations, including securing the assets of the companies and realising them for the benefit of the creditors. Further information will be made available in due course.”

Alderley PLC, whose head office and operations were at Arnolds Field Estate in Wickwar, near Wotton-under-Edge, began operations in 1989 and was founded by Bristol businessman Tony Shepherd.

The firm had its head office in in Wickwar but had operations in the UK and in the Middle East.

Alderley had  operations in the UK, India, Saudi Arabia, Singapore, United Arab Emirates and Qatar.

Specialised Management Services (SMS)-Alderley, had offices in Bristol, Norfolk and Scotland. Staff at the firm were informed they had lost their jobs by the administrators.

SMS manufactured equipment and provided maintenance and installation services for the oil and gas industry,

SMS was acquired by its parent company Alderley, a multi-disciplined engineering firm, in 2003.

A letter sent from the joint administrators to SMS-Alderley staff read: “I regret to have to inform you that the company is no longer in a position to make payments to you for services rendered by you.

“As a result you should regard your contract of employment with the company as terminated with immediate effect.”

The firm’s most recent filed accounts, from March last year, and covering business up to September 2022, painted a positive position.

Alan Wilson, Alderley PLC chairman, told investors: “It is pleasing to report that the Group’s financial performance improved significantly during the year with turnover increasing to £56m (2021 – £40.5m) an increase of 38%. Profit before tax was £0.4m, (2021 loss before tax of £2.7m) which is a remarkable turnaround from last year’s loss-making outcome.”

One anonymous member of staff posted a comment online claiming employees were told the news just two days before they were due to be paid.

They claimed the staff were given no warning that their jobs were under threat.