JM Engineering (Scarborough) Limited (06429273): administration
- Status
- Administration ended
- Administration began
- 2023-11-20
- Administrators
- Julian Heathcote, Daniel James Mark Smith
- Administrators' firm
- Teneo
- Incorporated
- 2007-11-16
- Location
- Birmingham
- Industry
- 71121 Engineering design activities for industrial process and production
Why it went into administration
- Funding withdrawn / unable to refinance
- Creditor pressure / legal action
- COVID-19
- Supply chain disruption
- Cash flow / liquidity pressure
- Sustained trading losses
- Credit insurance / supplier credit withdrawn
From the administrators' statement
The Companies began experiencing a decline in trading performance in 2020 principally due to the Covid-19 pandemic which forced extended periods of manufacturing shut down and disrupted the supply chain for essential parts required for production and to fulfil customer orders. Manufacturing was further impacted by the global shortage of semi-conductors for the vehicle industry.
During 2023 a number of suppliers placed the Companies on stop or pro forma payment as creditor pressure mounted and cash resources were stretched. This impacted the Companies’ ability to fulfil orders and meet target revenue levels.
The directors further attribute the Companies’ financial performance in 2023 to delays in product approval documentation being obtained from the Vehicle Certification Agency and delays in customer sign off on vehicles for dispatch leading to a significant extension in output time scales and subsequent drop in output volumes.
Administrators' statement of proposals (2024-01-12) · Companies House register