60 jobs saved at specialist engineering business
A SPECIALIST engineering business has been sold out of administration saving 59 jobs.
Grayton Engineering, based in East Yorkshire, was affected by the major contract losses for power stations.
£9m-turnover Grayton was part of The Power Industrial Group Limited, based in Derby. It turned over £33m in its most recent published accounts in 2014, down from £48m the year before.
LDC backed the business in 2011 using capital from its £200m manufacturing and specialist engineering commitment.
Partners Dan Butters and Clare Boardman were appointed joint administrators over Grayton on 7 November 2016.
They said that in early 2016, another subsidiary of the group was impacted by a substantial loss of contracts held with power stations, representing half the group’s turnover in the previous year.
The loss of these contracts had a material adverse impact on the Group’s financial position and resulted in losses and cash flow pressure.
The restructuring team has been working with the group since February 2016 to assess and review the situation.
Following their appointment, administrators concluded a sale of the business and assets, which were sold to Grayton Mechanical and Fabrication Services, advised by Geldards, preserving 59 jobs in the process.
