Thu, 21 Sep 2023 | ADMINISTRATION
Metal components business Heath Springs and Components is set to be brought to market after falling into administration. The company, which is based in Redditch, produces professional grade precision formed metal components, including springs and clips, for the automotive, industrial and aerospace markets.
In its accounts for the year ending December 31 2021, the firm reported turnover of £6.4 million, up from £5.4 million a year earlier, while gross profits increased from £662,204 to £905,883. The company did report a pre-tax loss of £242,849, but this was up from a £379,330 loss a year earlier.
However, the company suffered due to “unprecedented cost increases”, which resulted in significant cash flow issues. Jimmy Saunders and Matthew Ingram of Kroll have been appointed joint administrators of the company and are seeking to sell the firm as a going concern.
Kroll managing director and joint administrator Jimmy Saunders commented: “Heath Springs and Components is a long-established business, with a reputation for specialist engineering and providing a wide range of high-quality products.”
“However, like many companies in this sector, it has suffered from unprecedented cost increases which it has been unable to pass on quickly enough to its customers. Consequently, due to cash flow pressures facing the business, steps were taken to place the company into administration to stabilise operations and allow trading to continue.”
“We will be bringing the business to market in the coming weeks and are hopeful that a purchaser for the business as a going concern will come forward.”
In its 2021 accounts, Heath Springs’ fixed assets were valued at £2.3 million at current assets at £2.6 million, with net assets standing at £2.6 million.
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