Mon, 13 Feb 2023 | ADMINISTRATION
An accelerated sale process has been launched for refrigeration manufacturer Arctic Circle Limited, after the company fell into administration. The Hereford-based company designs, manufactures and distributes commercial refrigeration and heat pump systems, primarily for the retail food sector.
The business, which employs 74 staff, reported turnover of £6.1 million and operating profit of £112,912 in its accounts for the year ending March 31 2021, down from turnover of £6.9 million and operating profit of £322,902 a year earlier.
This decrease was attributed to the impact of the COVID-19 pandemic and lockdowns on the food retail sector. However, the company said it had successfully increased turnover from other sectors by more than 315 per cent and was “very optimistic about future turnover growth potential both within and outside of the food retail sector.”
Despite this optimism, the company continued to suffer as a result of economic headwinds and an ongoing legal dispute, ultimately resulting in Raj Mittal and Arvindar Jit Singh of FRP Advisory being appointed joint administrators on February 7.
Upon their appointment, the administrators retained all company staff and will continue limited trading, subject to customer support, while an accelerated sale process is conducted to find a buyer.
Joint administrator Raj Mittal commented: "ACL is a well-established operator in its sector, which has made significant strides in the decarbonisation of heating and cooling systems.”
"We expect interest from potential buyers and in the meantime, with the support ACL's staff, we will continue to engage with suppliers and customers as we maintain some limited trading during the sale process. We would encourage any interested parties to come forward."
The business was founded in 1985, moving to its current site on the Rotherwas Industrial Estate in 1995. In its accounts to March 31 2021, Arctic Circle’s fixed assets were valued at £2.27 million and current assets at £5.68 million, with net assets standing at £3.87 million.
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