South Scotland

Armoured vehicle firm Penman bought out of administration again

Penman Engineering
Image caption A total of 16 jobs have been saved at the site

An armoured vehicle firm in southern Scotland has been bought out of administration for the second time in three years.

Hull-based Martin Williams rescued the business in Dumfries in late 2016 but renewed cash pressures made it "unsustainable" in January this year.

The same company has stepped in again in a move which sees 16 jobs retained.

Administrators said the buyer understood the "strength and growth potential of the Penman business".

Before its first administration, about 140 people were employed by the firm which has a history dating back more than 160 years.

Staff numbers recovered to about half that level before the latest collapse in January this year.

Image copyright Martin Williams
Image caption The same buyers have stepped in as they did in late 2016

At that time 44 redundancies were announced.

Now Martin Williams has stepped in once more to run the business.

Joint administrator Blair Nimmo of KPMG 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, cash flow challenges meant the business in its previous form could no longer find long-term sustainable solutions, leaving it no other choice but administration."

He said the latest announcement secured a number of highly-skilled roles.

"The buyer has previously invested in and understands the strength and growth potential of the Penman business," he added.

The deal does not include the intellectual property in Penman's armoured vehicle system.

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