Multi-million pound metal recycler bought out of administration

All 12 jobs at scrap metal recycling business Metal Sourcing have been saved after a pre-pack deal was sorted for the Pudsey-based business.

The company, which specialises in the collection and recycling of scrap metal, appointed administrators Howard Smith and Jonny Marston of KPMG on 37 February.

They said that the company had experienced “difficult trading conditions” as a result of a competitive market and a decline in the global price of metal.

Administrators said that the business, which turned over £42m in its latest accounts for the year to September 2015 and made pre-tax profits of £100,936 in the same year, saw a downturn in profitability which led to its administration.

A pre-pack sale was agreed to Infinity Metals Limited under directors Ian Taylor and Anthony Brewster.

The sale of both the business and assets of the company included the transfer of all 12 employees.

Howard Smith, partner at KPMG and Joint Administrator, said: “Macroeconomic factors can put significant pressure on the financial stability of a company. This transaction saved jobs and provides a complementary fit for both businesses.”