Thu, 04 Aug 2022 | ADMINISTRATION
Administrators are seeking a buyer for two Bletchley-based businesses which provide pressed and sheet metal components for the UK automotive industry. Broadways Stampings Ltd and Dyson Diecasting Ltd have fallen into administration in the face of numerous headwinds impacting the automotive sector, including COVID-19, Brexit, rising material and energy costs, supply chain disruption and shortages of labour and components.
The businesses are among the UK’s last family-owned independent pressed and sheet metal component manufacturers and die casters. The businesses has been operating for 46 years, with Broadways having bought out Dyson Diecasting in 2017, and employ 319 people.
The numerous pressures faced by the businesses have taken a toll on trading and led them to seek urgent financial support from customers in order to continue production at their sites. This funding was subsequently secured and, in order to protect the interests of creditors, the directors appointed Ryan Grant and Chris Pole of Interpath Advisory as joint administrators.
The funding will enable the firms to continue trading while the joint administrators conduct a sale process for the businesses and their assets.
Joint administrator and Interpath Advisory Managing Director Ryan Grant said: "Broadways Stampings and Dyson Diecastings are proud family-owned businesses with a long heritage of manufacturing and supplying specialist products to the UK automotive industry.”
"Unfortunately, the myriad of issues facing the sector over the past two to three years have had a significant negative impact on the Companies, resulting in the directors needing to take proactive action to safeguard the businesses’ future. "
Grant added: "Our priority is now to work with suppliers to re-establish and ramp up production at the sites following next week's annual shut-down in Bletchley, while we immediately explore interest in the businesses and assets."
In the group’s most recent accounts, for the 18 months ending October 31 2020, it reported turnover of £31.2 million, significantly down from £27.1 million in the 12 months to April 2019, with the drop attributed “entirely” to the impact of the COVID-19 pandemic. For the period, the group reported a pre-tax loss of £2 million, compared to profits of £255k in the year ending April 2019.
At the time, the businesses had fixed assets of £12.4 million, current assets of £11 million and net assets valued at £6.87 million.
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