The future of armoured vehicle specialist Penman MW has been secured after it was put into administration then sold to a company part-owned by some of its former directors.
The trading business of Penman MW Ltd was taken out of administration in October 2016 by Christopher Williams and Nicholas Williams, who are also directors of commercial vehicle builder Martin Williams (Hull) Limited, and Jonathan Brook.
Dumfries-based MW Penman Ltd went into administration last month, citing cashflow problems. When its last accounts were filed in November 2018, it had debts of £6.4 million.
Now, in a restructuring organised by KPMG, Martin Williams (Hull) Limited has bought the trading business and some of Penman MW's assets.
The sale out of administration will save the jobs of 16 members of staff remaining - from the original 44 - who will be transferred to Martin Williams. Blair Nimmo and James Lumb from KPMG Restructuring were appointed as joint administrators of the Dumfries-based on 15 January.
The business has been in operation since 1859, specialising in the design, construction and software development of security and armoured military vehicles. It was rescued from a previous administration in 2017 but hit increasing cashflow pressures over the last few months.
The administrators have retained the intellectual property in Penman MW's armoured vehicle system and are currently exploring sale options.
Blair Nimmo said: “The Penman business has a rich heritage in Dumfries and its team of employees are renowned for their knowledge and innovation in the field. Despite the company’s best efforts, cashflow challenges meant the business in its previous form could no longer find long-term sustainable solutions, leaving it no other choice but administration.
“Today’s announcement secures the future of 16 highly skilled roles in Dumfries. The buyer has previously invested in and understands the strength and growth potential of the Penman business. Our focus now as administrators will be on securing the sale of Penman MW Limited’s armoured vehicle intellectual property.”
