Mon, 15 May 2023 | ADMINISTRATION
South Wales manufacturer TEAM Precision Pipe Assemblies Limited has fallen into administration. EY-Parthenon's Lucy Winterborne and Dan Hurd were appointed as joint administrators and will now seek a buyer for the Carmarthenshire-based firm.
In its most recent accounts, for the year to September 30 2021, the company reported turnover of £9.7 million, up from £7.1 million a year earlier. However, it also reported a loss for the year of £409,000, down from a £645,000 loss a year earlier.
The company, which was headquartered on the Parc Hendre Industrial Estate in Capel Hendre, is a manufacturer of pipes and assemblies for HVAC and air conditioning units, with the firm’s products primarily utilised in the automotive sector.
However, the business was hit by a number of headwinds over recent years, including the COVID-19 pandemic, leading it to appoint administrators. Approximately 170 staff were employed by the company pre-administration, with administrators saying that 16 redundancies were made upon the company entering administration.
Joint administrator Lucy Winterborne from EY-Parthenon's turnaround and restructuring team, commented: “The company has faced financial difficulty over recent years, primarily due to a fall in demand during the COVID-19 pandemic and the challenges facing the wider automotive sector that it supplies to.”
Winterborne added that the business is continuing to trade on a reduced capacity while the joint administrators seek a buyer for the firm. Winterborne said that they were “currently liaising with a number of parties who are undertaking due diligence.”
In its accounts to the year ending September 30 2021, TEAM Precision Pipe Assemblies’ fixed assets were valued at £2.8 million and current assets at close to £3.7 million, with the company’s total equity standing at around £309,000.
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