More than 40 jobs have been saved following the pre-pack sale of Fife electronics manufacturer Quality Precision Electronics Ltd.
Michelle Elliot and Callum Carmichael, partners at business advisory firm FRP Advisory Trading Ltd, were appointed as joint administrators to the Company on 11 February.
A decline in sales following the pandemic, coupled with rising operational costs had caused the Glenrothes-based business, which specialises in building printed circuit boards, to experience financial difficulties. Having been unable to secure further external financing to ease cash flow pressures, the business entered administration.
But FRP confirmed that a rescue deal has been agreed with Testworks (Scotland) Ltd, another electronics manufacturer based in Dunfermline, enabling the business to continue trading, now under the name of QPE Limited, and securing the jobs of all 41 employees.
Andy Chick, managing director at QPE Limited, said: “We are pleased to have been able to work with FRP to protect the jobs and operation of Quality Precision Electronics Ltd. As experienced owners in the technology sector we saw this as a great opportunity to work with a skilled team, in an important region, supplying a wide range of services to an exciting customer base. We look forward to helping the business, stabilise and prosper.”
Michelle Elliot, partner at FRP Advisory Trading Ltd, said: “The manufacturing sector has had to grapple with a number of challenges in recent years, including tighter margins on contracts and rising operational costs. But the business still retains strong relationships with its core customer base, and its ability to service multiple sectors ranging from life sciences to defence and security means it was still an attractive acquisition.
“It’s great to have secured a positive outcome for securing the jobs of all its employees and providing a platform for the business to grow under new ownership.”
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