Blair Nimmo and Geoff Jacobs of KPMG LLP were appointed as Joint Administrators of IMES Limited (“IMES” or the “Company”) on 10 August 2016 at the request of the Company’s directors.
IMES provides specialist inspection, examination and engineering services and produces a range of products (principally the supply and service of load measurements, monitoring and control systems) for customers in the oil & gas, defence and industrial markets.
The Company, which had a turnover of around £5 million, was cash generative in 2014 before it began to experience cash flow challenges in 2015 due to the ongoing oil price decline. This resulted in a fall in client orders, as operators in the oil and gas sector began to cut costs and actively target reductions in both capital and operating expenditure.
Continuing cash flow pressures led to the directors attempting to secure new investment into the Company. When this could not be obtained, the directors recently marketed the Company for sale. Following this process a preferred bidder was identified and a period of exclusivity granted. Immediately following the appointment, the trading business and certain assets of IMES were acquired by Seanamic Group.All 49 of the Company’s employees were transferred as part of the transaction. 23 of the employees are based in Aberdeen with the remainder located in the Company’s depots in Rosyth (6), Sheffield (7), Portsmouth (6) and Plymouth (7). Blair Nimmo, Joint Administrator and UK Head of Restructuring for KPMG, said:
“In these difficult times for the oil and gas sector in particular, we are pleased to have concluded the sale to Seanamic Group, which will safeguard the jobs of the Company’s employees, preserve customer service and provide the best available outcome for all stakeholders of IMES Limited. We wish the purchaser every success in taking the business forward.
“The administration of IMES is another example of the current challenges in the oil and gas sector whilst also demonstrating that there is appetite for investment in stressed and distressed businesses in the sector.”
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.