The business of ESP Technologies Group Ltd (ESP) has been sold following the appointment of Administrators on 1 June 2017. The company has traded since 1993 from premises in Aylesford, Kent with a strong reputation for quality and reliability in wide format.
Following the loss of a major national contract in 2016, the significant drop in turnover in the first quarter of 2017, combined with a substantial write down in fixed asset values of up to 70% over a relatively short period of time, resulted in the business being placed up for sale. Independent agents SIA Group marketed the business and, whilst there was some initial interest from the sector, no unconnected party offers were received. The business was then acquired by Mattech Enterprises Ltd led by a former employee and the sale was overseen by Andrew Pear of BM Advisory LLP, the restructuring, recovery and insolvency specialists.
Andrew Pear comments: “The sale of the business and assets has achieved a good outcome for stakeholders securing 10 jobs alongside the continuation of service to a number of loyal national customers”.
Throughout the restructure and leading up to the appointment of administrators, BM Advisory has worked alongside the company to utilise appropriate legal and valuation experts to support the process. They also engaged with the company’s working capital provider to ensure critical business expenses could be met during this challenging time in order to maximise the value of the business.
The expertise of businesses such as ESP, with a focus on non-paper materials such as plastics and PVC, is anticipated to account for 14.2% of industry revenue in the current year. This segment is expected to have grown significantly over the past five years because, unlike other segments, its products do not face competition from online alternatives. Printing on non-paper materials is projected to continue to grow over the next five years.
– Ends –
Andrew Pear and Michael Solomons of BM Advisory were appointed Joint Administrators of ESP Technologies Group Ltd on 1 June 2017. The Joint Administrators act as agents of the company and contract without personal liability.