Tue, 06 May 2025 | BUSINESS SALE
Formula Plastics Limited, an injection moulding company based in County Durham, has been acquired out of administration. The company collapsed into administration earlier this month, following a period of financial difficulties, but has now been acquired by Lancashire-based Formula Components Limited.
Founded in 1996, Formula Plastics specialises in producing high-tolerance precision components used across a wide array of sectors, including electronics, lighting, automotive and consumer goods.
Despite the business’ established standing, it experienced a period of financial difficulty recently as a result of delayed production relating to electric vehicle programmes. This subsequently led to Allan Kelly and Shaun Hudson of FRP Advisory being appointed as joint administrators of the company on June 2 2025.
Upon their appointment, the joint administrators launched an accelerated marketing process to secure a buyer for the firm, ultimately resulting in a successful sale of the business and its assets to Chorley-based Formula Components Limited.
As a result of the successful sale, all 34 jobs at the company’s facility in Newton Aycliffe have been secured and the business’ operations will continue as normal under the ownership of Formula Components.
FRP Advisory director and joint administrator Shaun Hudson commented: "As a long-established business with nearly 30 years of experience, Formula Plastics has built a strong reputation for quality and a highly skilled team.”
“While delays to electric vehicle programmes placed unsustainable pressure on its cash flow, we're very pleased to have secured a sale that preserves jobs and enables continuity of operations under new ownership. We wish the new team every success as they build for the future."
In its accounts for the year to April 30 2024, Formula Plastics’ fixed assets were valued at £474,000 and current assets at close to £1.1 million. However, its net liabilities at the time exceeded £204,000.
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