Wed, 16 Sep 2020 | BUSINESS SALE
A Plymouth window manufacturing business that formed part of the defunct PCH Manufacturing has been rescued in a buy-out deal. Housing provider Plymouth Community Homes (PCH) has agreed a deal to sell the warehouse, which formed part of PCH Manufacturing, for an undisclosed amount to Karsal Manufacturing Ltd.
PCH announced in May of this year that its manufacturing unit would cease trading on August 31 2020, putting 54 jobs at risk. The company blamed the COVID-19 lockdown for it being unable to complete some existing contracts, being unable to secure new contracts and losing future contracts.
Some staff secured jobs within PCH itself, but there were some redundancies. All existing staff at the Prince Rock window factor will now transfer to Karsal following the sale.
PCH Manufacturing, which became a sister company to PCH after the main company was hived off from Plymouth City Council, specialised in manufacturing PVCu windows, as well as signage and joinery.
Karsal is a sister company of Fenster Ltd and specalises in aluminium windows, as well as the installation of PVC-U windows for new-build developments. The company is looking to expand and strengthen its supply chain by growing its manufacturing capacity in Plymouth.
Following the acquisition, Karsal will take up a new lease at Plymouth City Council’s Prince Rock site, where it will begin manufacturing PVC-U windows and doors. It also plans to expand its PVC-U operations in future, creating jobs and apprenticeships in the local area.
Fenster Managing Director Tony Drake commented: “Expanding our business is a move we’ve been looking to make for some time and we’re extremely pleased to have made such a great purchase from PCH. We know the skills and experience we’re buying into – there’s years of manufacturing knowledge among the staff and a history of mass production that we’re extremely excited about. We can’t wait to make our first PVC-U Karsal window in Plymouth.”
“We’ve worked very hard as a company to achieve a loyal and established customer-base, and great contacts right across the construction industry, which we’ll be growing in this next stage of our group’s development. In these challenging times for many, we’re proud to be able to provide some hope and opportunity to those looking for work.”
PCH Director of Corporate Services and Manufacturing Gill Martin said: “We’re delighted that a thriving South West business has seen the potential in the window factory and will be taking over the machinery, premises and, most importantly, the highly skilled and experienced staff working there.”
“It’s been a difficult and challenging time saying goodbye to our manufacturing unit but this is something really positive that’s come from a very tough situation. I’m most pleased for the staff, who will TUPE across to Karsal and begin their new working lives today.”
In its most recent accounts, made up to the year ending March 31 2019, PCH Manufacturing had reported profit before tax of £232,7085, up from £59,000 a year earlier, with turnover for the year of close to £2.5 million across its joiners shop, sign shop, metal fabrication shop and window factory and fitters.
Its current assets were valued at £1.3 million, with creditors due a little over £1 million. Net assets were valued at £266,000.
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