MTAG Composites Ltd, MTAG (Holdings) Ltd, and Electric Future Group Ltd went into administration on July 12. Gareth Harris and Deviesh Raikundalia of RSM UK Restructuring Advisory LLP are the appointed joint administrators.

The Lincolnshire-based manufacturer of moulded composite parts for the rail, automotive, aerospace, construction, and leisure sectors entered administration after facing significant financial difficulties. The company is now seeking a buyer actively, and administrator efforts are underway for the same. 

MTAG Composites, the trading company, is based in Coningsby and produces items such as boats, train interiors, and aircraft seating. Operations were temporarily halted upon the appointment of the joint administrators while they considered viable options. The family owned business has approximately 120 employees. 

After an accelerated review of the business’s financial position, limited day-to-day operations have resumed to align with the timetable for an accelerated sale process. Administrators have made minimal redundancies, retaining all operational and production staff on a “lay-off” basis. Retained staff will continue to be paid, and their commitment and patience are appreciated.

The decision to recommence operations demonstrates a commitment to save the business and protect staff livelihoods. Although not at full capacity, ongoing production will assist in finding a buyer for all or part of the business.

The firm’s latest accounts reveal a profit of approximately £1.6 million. Earlier this year, US-based Tiderock Companies made a £6.75 million takeover bid for MTAG Composites. However, on May 23, this bid to purchase a 90% share was canceled. Instead, Tiderock acquired MTAG Global, the exclusive distributor for MTAG Composites. As part of this deal, Tiderock paid MTAG Composites a one-off fee of $250,000.

There has been significant interest in acquiring the business in the short time since the sales process began. The administrators continue to engage with all interested parties, there is no confirmation about potential deals yet.