Administrators drill down to save manufacturer
A PRE-PACK administration has saved the jobs of 45 staff at Halco Rock Tools after its private equity backer exited the business.
Administrators Howard Smith and Jonny Marston from KPMG were appointed as joint administrators on 31 August 2016 following pressure from creditors.
The Brighouse-based company, which was formed in 1948, had been experiencing “severe” working capital difficulties as turnover fell.
Last year the company turned over £8.9m for the 18 months to 30 June, when its accounting period changed. The year before, to December 2014, the company made £8.4m in sales, but also a substantial loss of £5.3m.
It supplied the embattled mining, oil & gas sectors with specialist air hammers and drills. As a result of its revenue decline, owners Regent Equity Partners exited the business after only a year.
Regent had acquired Halco through its wholly owned subsidiary Halco International last year from machinery giant Caterpillar.
The administrators organised a pre-pack sale of the business and assets to its management team, which is rebranding the firm to Halco from Halco Rock Tools.
All 45 staff transferred to the purchaser, and the joint administrators at KPMG are agreeing post-sale matters and realising the assets not included in the sale.
