BTG Begbies Traynor secures sale of North East biomed business Acculabs Diagnostics

BTG Begbies Traynor has completed the sale out of administration of a North East medical testing and diagnostics business, securing the future of the company and safeguarding all 32 jobs.

Andrew Little and Gillian Sayburn, partners at BTG Begbies Traynor, were appointed Joint Administrators of AccuLabs Diagnostics UK Limited on 16 June.

Prior to the administration, the Wynyard-based business was marketed for several weeks, attracting four bids. The successful offer came from the company's incumbent directors, securing the future of the business and preserving all 32 jobs.

The sale also represents a positive outcome for creditors, with a substantial return expected for unsecured creditors.

Established in 2010, AccuLabs Diagnostics UK provides medical testing and diagnostic services to clients across the healthcare sector.

The company had experienced a challenging trading period after several significant contracts took much longer than anticipated to commence. This resulted in ongoing losses, with the business being supported financially by its directors while falling behind on payments to HMRC.

Following the rejection of a proposed Company Voluntary Arrangement (CVA) by HMRC, the directors sought the appointment of administrators.

The sale out of administration provides a platform for the business to continue trading, with an existing pipeline of contracts, including work related to testing services associated with weight loss medication.

Andrew Little, Partner at BTG Begbies Traynor, said:

"We are very pleased to have secured a sale of the business in a deal that protects all 32 jobs and allows AccuLabs to continue operating under the existing management team.

“The level of interest received during the marketing process demonstrates the underlying strength of the business. The transaction also delivers a positive outcome for creditors, with a substantial return anticipated for unsecured creditors."

Debbie Banks, Chief Executive of AccuLabs Diagnostics UK, said:

"After a challenging period, we're pleased to have secured the future of the business and to be moving forward with the support of our experienced team. It's very much business as usual for our customers and partners, and we're excited about the opportunities ahead."