SFP completes sale of BH Precision and secures jobs
Nationwide insolvency practitioner SFP has successfully completed the sale of West-Sussex-based high precision machining, fabrication, welding, and engineering services business BH Precision Limited, after the company was placed into administration. All 14 employees’ positions will be safeguarded as a result.
BH Precision was incorporated in July 2016 after the acquisition of plant and machinery, stock and client contracts from a predecessor. Its Burgess Hill premises houses production facilities and office space to enable the manufacture and delivery of high-quality components and CNC Milling to the oil and gas, drilling, sub-aqua telecommunications, automotive, construction and audio industries. Its extensive experience covers materials ranging from plastics to exotic metals, and finishing processes such as plating, anodising and sherardising.
During 2018, the company lost a major customer which reduced its turnover by almost a quarter creating financial difficulties and the accumulation of creditor arrears. BH Precision subsequently entered into a Company Voluntary Arrangement (CVA) in November 2019.
Unfortunately, the company found itself in further arrears due to a loss of trade as a result of COVID, and while the terms of the CVA were honoured until January 2021, the Company become unviable a short while afterwards.
David Kemp and Richard Hunt, of SFP, were appointed as Joint Administrators on 8 June 2021.
Following a period of marketing, the Joint Administrators subsequently achieved a sale of the business and assets to a new business, BH Precision Engineering Limited, on the 17 June 2021, retaining the entirety of the workforce, as well as the area’s specialist engineering and manufacturing expertise.
David Kemp of SFP says it is an immensely challenging time for a wide range of businesses: “The difficulties encountered by BH Precision are far from uncommon, especially in small businesses, where the loss of a major client can be catastrophic, catalysed by reduced trading as a result of COVID-19.
“We are extremely pleased to have been able to achieve a sale of the business and safeguard valuable jobs within the area in this climate. Our advice to any business experiencing severe financial difficulty is to seek specialist guidance early – to protect jobs, regional expertise and maximise the position for creditors.”