A Gloucestershire engineering firm has entered administration, resulting in the loss of hundreds of jobs.

Alderley Plc, along with its subsidiaries Alderley Systems Ltd (ASL) and Specialised Management Services Limited (SMS), has had its assets and property taken over by joint administrators Alistair Wardell, Richard Lewis, and Rob Parker from Grant Thornton.

The combined businesses, which employed over 450 staff, operated primarily in the oil and gas markets, designing, manufacturing, and servicing control systems. Despite attempts to secure the companies’ future, recent trading difficulties led the directors to conclude that entering an insolvency process was the best option.

The firm’s most recent filed accounts from March last year, covering business up to September 2022, indicated a positive position. Financial performance had significantly improved during the year, with turnover increasing by 38% to £56 million from £40.5 million in 2021. The company also reported a profit before tax of £0.4 million, a significant turnaround from the previous year’s pre-tax loss of £2.7 million.

The administrators will now assess the companies’ financial positions, secure assets, and realise them for the benefit of creditors. Operations have ceased, and further information will be provided in due course.

Alderley Plc, founded in 1989 by Bristol businessman Tony Shepherd, had its head office in Wickwar, Gloucestershire, and operated in the UK, Middle East, India, Saudi Arabia, Singapore, UAE, and Qatar. SMS, acquired by Alderley in 2003, had offices in Bristol, Norfolk, and Scotland, manufacturing equipment and providing maintenance services for the oil and gas industry.

Staff were informed of their job losses by the administrators, with an official letter stating that the company could no longer make payments and that employment contracts were terminated with immediate effect.

Despite positive financial performance reported in the most recent accounts, the sudden administration has left employees shocked, with some claiming they were given no prior warning about the threat to their jobs.