Overview:
Exigen completed the sale of Stoke-on-Trent-based Bennett Manufacturing Services Limited, securing the future of all 110 employees following the company’s entry into Administration. Founded in 2009, the business specialised in the manufacture of cast iron and aluminium components, supplying leading global construction machinery producers.
Financial Challenges:
Despite reporting a turnover of around £5 million in 2018, the company faced mounting financial pressure after unsuccessful attempts to agree a ‘Time to Pay’ arrangement with HMRC. A significant bad debt of approximately £190,000 further impacted cash flow, and additional unsecured business loans were not enough to stabilise operations.
With ongoing difficulties meeting commitments to suppliers and HMRC, the Directors appointed Simon and Daniel Plant of Exigen as Joint Administrators on 19 June 2019.
Simon Plant, Director of Exigen Group, commented:
“After a detailed review of the company’s financial position, it became clear that continued trading was no longer viable. Entering Administration allowed us to protect the core business and find a buyer capable of taking it forward. The new owners have acquired a well-established operation with a strong client base and will be focusing closely on financial management. We’re pleased that all 110 jobs have been preserved.”
Outcome:
Exigen successfully completed a going concern sale of the business and assets to BMS Machinery Limited, ensuring business continuity and safeguarding the employment of all 110 staff.