A Scottish engineering company has been placed into administration, having run into problems with its cash flow.
Mowat Technical and Design Services (MTDS), based in Achlibster in Caithness, is a specialist engineering company, with a multimillion pound turnover. Employing more than 25 staff at its site, it offers services which include fabrication and surveying in the specialist plant arena.
The firm will continue to operate as work continues to seek a new buyer.
The administrators are hopeful of a deal soon, with one saying that the “outstanding reputation” MTDS has should hold the firm in good stead.
The administrators, Tom MacLennan and Iain Fraser, of RSM Tenon explained that recent cash flow issues have affected the firm. It is a story many other firms in Scotland will be familiar with.
From suffering reduced contracts, to having issues with invoice settlement, many have struggled to control cash flow. However, with the help of invoice factoring facilities, working with an asset finance broker is helping many turn things round.
The administrators are confident of securing a deal for the 15-year-old company, with Iain Fraser saying:
“The business has a blue chip client base and a strong pipeline of potential work.
“We are marketing MTDS for sale with immediate effect, and would urge interested parties to make contact with us as soon as possible.”
With expertise in the design and installation of specialist plant, MTDS’s turnover is somewhere in the region of £2m, with a notable recent contract being on the Caithness’s Dounreay nuclear plant.