150 jobs lost as defence firm calls in administrators

DEFENCE specialist MTL Group has called in administrators, resulting in the loss of more than 150 jobs.

John Sumpton and Hunter Kelly of EY’s restructuring team have been appointed joint administrators of the Rotherham-based contract manufacturing specialist.

Mr Sumpton said: “Although the company was historically profitable, it has encountered difficulties on a large overseas defence contract which resulted in losses and cash flow problems.

“Despite best efforts to secure new investment or a sale of the company, the immediate cash flow pressures left MTL Group unable to meet its creditor obligations and the directors took steps to appoint administrators.”

He added: “We are assessing our options to keep the facility operating in the short term whilst seeking a buyer for the business and are continuing to provide product to certain customers. We would encourage any interested parties to come forward.”

A total of 157 employees have made redundant across the company’s head office and manufacturing facility in Rotherham, while 146 staff have been retained to help with ongoing operations while a buyer is sought.

Established in 1995, MTL Group underwent a management buyout in 2006. Clients include BAE Systems and Caterpillar.