PressureFab is latest oil price victim
42 jobs go as offshore container firm goes bust
Dundee-based PressureFab, its parent company Twickler Industries and four group companies have collapsed following the slump in the oil price.
Blair Nimmo and Tony Friar of KPM were appointed joint administrators at the request of PressureFab’s director.
The company is a designer and manufacturer of specialist rig topside and subsea equipment.
Operating from a 250,000 sq ft facility on the A90, the group has the resources to design and fabricate bespoke projects up to 2,000 tonnes of steel volume and single components of up to 50 tonnes.
Despite an annual turnover of ab out £5.3 million as recently as the year ending 31 January 2015, the company has been significantly impacted by the oil and gas downturn.
A sharp fall in revenues has resulted in unsurmountable cash flow difficulties, ultimately leading to the administration appointment.
Over the past 18 months the group has reduced costs in an attempt to mitigate the effects of reducing activity levels. The headcount has fallen from a peak of about 100 last year. The remaining 42 employees made redundant shortly before the group entered administration.
The joint administrators will be helping the employees to claim their entitlements and will enlist their support, where appropriate, in realising the assets across the group.
Blair Nimmo (pictured), head of restructuring for KPMG in the UK said: “PressureFab Limited is the latest firm to fall victim to challenging trading conditions in the oil and gas sector.
“As client orders were cancelled or postponed, the number of new business enquiries reduced significantly, leaving the company with no option other than to cease trading.
“We are currently reviewing the company’s financial position as we seek to complete certain orders and realise stock.
“The company is widely considered to be a leading manufacturer for the sector and we anticipate there will be interest in the company’s infrastructure including its property, plant and intellectual property.
“We would encourage any party with an interest in acquiring the company’s assets to make contact with us as soon as possible.”