A Poole-based engineering and construction firm has been sold out of administration in a deal which is expected to secure the future of the business.
EWL Building Services Ltd appointed leading business recovery and rescue specialist Begbies Traynor to handle its administration process.
Gavin Savage, a director at Begbies Traynor’s Southampton office, completed the sale of the business on May 3 to Tamar Design and Build Ltd. The sale out of administration has secured the jobs of seven staff working for the business.
The director of the business, Mark Clements, will continue to play an integral role in the running of the new firm.
Mr Savage said the company formerly had two main offerings – mechanical and electrical engineering, and construction. Though the mechanical and electrical engineering side of the business had fared well, the construction side had suffered due to diminished profit margins which has adversely impacted the company’s cash flow.
Mr Savage said: “As the company had been struggling, it was decided that administration and a subsequent sale was the best course of action. This has meant that we have enabled the director to restructure and move on quickly and efficiently in order to meet the future requirements of the business. It has also meant that no employees were made redundant as a result of the administration order, and we have secured the jobs of the seven staff.
"If we had not acted quickly to secure the sale, the company would have likely closed, resulting in both a loss of jobs and a worse return for creditors."
Gavin joined Begbies Traynor in Southampton in 2008 having been involved in business recovery and insolvency since the late 1980’s. His career started with KPMG in Southampton experiencing a wide range of both corporate and personal insolvencies. Having passed JIEB in 1997, he moved to Ernst & Young in London, where he was involved in a number of large corporate insolvencies in a wide range of industry sectors. Gavin was also a director of a marine company, retailing luxury leisure boats, with offices throughout the UK and Europe. This experience has provided him with a good understanding of the issues facing businesses, directors and stakeholders.
Gavin is a member of the Insolvency Practitioners Association and deals with all aspects of corporate recovery work.