Weymouth engineering firm FGP recovers from administration to post end of year profit
Taken from original article in the Dorset Echo, written by Alex Peace:
An engineering company which entered administration just three months ago has announced that it will end the year making a profit.
FGP Precision Engineering, which is based on the Granby Industrial Estate, entered administration in September before being bought by FGP Systems Limited later that same month.
Cyrus Investment Management LLP (CIM), the company which completed the acquisition on behalf of FGP Systems Ltd, announced that FGP Precision Engineering is now making a profit and there are plans to invest more money in the company next year.
FGP entered administration after it encountered problems with short term cash flow pressures and working capital constraints and initial attempts to sell the company or secure short term cash flow failed.
However, following the sale, the company managed to retain 85 percent of its workforce, with 26 people made redundant when it entered administration, but 105 jobs saved.
Peter Schwabach, managing partner of CIM talked of the company’s recent success. He said: “We were able to save 105 jobs, it was a good feeling to be able to do that.
“Whenever you take a company out of administration, you take certain risks. One of the risks is that all the customers want to leave and the staff want to leave.
“It’s one of those cases where we have got a very good business that ran into financial problems because it was mismanaged rather than the product being poor.”
However, it is now looking forward with plans already in place for next year.
Mr Schwabach said: “Our plan is to put more money in to the business, take on more staff, to build up more products.
“It’s a really good British success story, a Dorset success story.”
FGP is said to be one of the UK’s top five aerospace precision engineering companies.
CIM’s chief investment officer, Ian Watkins, spoke of the delight in acquiring the company.
He said: “We are delighted to have acquired this world class precision engineering company, retaining the entirety of FGP’s customer base, 100 percent of its state-of-the-art machinery as well as 100 percent of its apprentices and core engineering staff.”
Mr Schwabach said that by investing new capital, management and products the company aims to increase profitability in the company.