Administrators called in as time for deal runs out
ADMINISTRATORS have been called in to electric motor manufacturer Saietta Group just under two years since it took over a Sunderland factory.
The Oxford-based company bought the former ZF factory in Houghton le Spring in 2022 and hired some of the firm’s former staff amid plans to use the North East facility to accelerate its growth ambitions.
But Saietta, which last month said it had received an offer of £600,000 for the plant, said a deal could not be reached in time to save the business. Joint administrators Lucy Winterborne and Daniel Hurd have now been appointed.
A proposed sale of the Sunderland production line, which employed about 40 people, came as a contract to provide an electrical steering pump at the site fell through, making the plant redundant. Saietta said that while the work was not to produce any of its own products, it would have contributed to group revenue at modest margins.
Trading in Saietta shares was suspended on Monday as chairman Tony Gott said talks with interested parties would continue in administration. Last month Saietta said it had enough cash to see it through until the end of March and had appointed EY to conduct a strategic review and sale process.
Just prior to that announcement, chief executive David Woolley said he believed there was a good market opportunity for the firm’s eDrive products.
Tony Gott, Chairman of Saietta, said: “While we can confirm we’ve had some genuine interest, at present we do not have a proposal that provides the necessary liquidity in the time we have available, following the company’s commercial update of February 13 and the subsequent market reaction.
“Despite all other aspects of the business remaining in progress and following major restructuring throughout the business over the last 12 months we were unable to provide the capital required, on a timely basis, to complete the journey to bring the group to a self-financing position.
“Discussions with interested parties will continue in administration, as we believe that the technologies developed by Saietta, as endorsed by our customers may yet find a route to finally achieve our mission, to help clean up the air in the world’s major cities.
“On behalf of the board I express to our staff, shareholders and all other affected stakeholders our deepest regret that we are having to take the very difficult decision to appoint administrators.”
Saietta Group launched on the London Stock Exchange’s AIM market in 2021, raising £37.5m and giving it a market capitalisation of more than £100m.