Aberdeen takes another hit

Jobs axed as oil price slump claims engineering firm

Blair NimmoA cash flow crisis caused by the fall in the oil price has claimed another casualty in the north east.

Craigshaw Holdings, the holding company for Enterprise Engineering Services, has called in administrators, putting 58 staff out of work with the future of a further 49 in doubt.

The business provides engineering services including design, fabrication, assembly, installation and inspection. It has been trading since 1966 and has worked with a large number of clients.

It blamed its problems on the “sustained drop in the price of oil” which has led to a significant fall in orders.

Turnover has fallen from £23 million in 2014 to £17m in 2015. Resulting losses have caused significant cash flow problems, “ultimately leaving the directors with no option but to seek the appointment of administrators”.

Blair Nimmo (pictured), Tony Friar and Geoff Jacobs of KPMG were appointed joint administrators yesterday and are looking for a buyer.

At the time of the appointment there were 108 employees at EESL in Aberdeen with a further seven employed in Caithness which EESL acquired in 2013 after purchasing Mowat Technical and Design Services.

Following the appointment 58 staff have been made redundant (54 in Aberdeen and four in Caithness). A further 49 employees (46 in Aberdeen and three in Caithness) have been sent home pending clarification of ongoing customer requirements.

The administrators say these employees will be advised of their position as soon as possible together with the remaining eight (all Aberdeen-based) who have been retained to assist in the administration process.

The administrators are currently liaising with key customers on the completion of certain contracts and work in progress and looking at options to secure the business, infrastructure and assets.

Mr Nimmo said: “Enterprise Engineering Services Limited has a long history of servicing the energy industry across the UK but, like many businesses in the sector, it has been negatively impacted by the low oil price and the consequent reduction in upstream activity.

“However, the company has a strong reputation in its markets, together with an asset base which will be of interest to other operators, principally comprising its forward order book, two property facilities, and a variety of machinery in addition to intellectual property.

“We are currently working with retained staff to realise all assets, and will provide all employees affected by redundancies with appropriate guidance and support.

“We will do everything we can to seek a buyer who may be able to protect the company and would encourage any party who has an interest in acquiring the company’s business and its assets to contact us as soon as possible.”

Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.