Alvarez & Marsal has stepped in to oversee the administration of New Engineering, a company based in the Midlands with operations in Worcester, Derby, and Kidderminster. The team at Alvarez & Marsal will now evaluate potential paths forward for the business and are urging any interested parties to reach out promptly.
New Engineering is an engineering firm that emerged from a previous administration process in March 2023. At that time, the assets of Neos Superform and Neos Composite Solutions were consolidated into this new entity. These companies, formerly part of Néos International, specialized in producing super-formed aluminum and magnesium alloy components, serving major OEM customers in industries such as rail, aerospace, and automotive, along with markets like design, architecture, and medical.
However, despite the initial optimism surrounding its creation, New Engineering has faced challenges from the outset. When it was first formed, the company inherited 175 jobs, which administrators from Keystone Law at the time were pleased to help preserve. Unfortunately, the current workforce stands at just 120, indicating that not all the roles were saved in the long run.
The pressures have only intensified in recent months. New Engineering has been struggling with cash flow issues, which have been worsened by delays in project timelines, rising costs, and limited access to trade credit. This has ultimately led the company to seek assistance from Alvarez & Marsal, a firm known for its expertise in navigating complex business challenges. With a global team of over 10,000 professionals, Alvarez & Marsal works across six continents, providing solutions for corporates, boards, private equity firms, law firms, and government agencies.
Mike Denny, one of the joint administrators from Alvarez & Marsal, highlighted the significant financial pressures New Engineering has been facing, which have been compounded by the aforementioned factors. Together with Mark Firmin, Denny will now work swiftly to explore all available options for the business, aiming to find the best possible outcome under the circumstances. They are particularly keen to hear from any parties who may have an interest in the company’s future, encouraging them to make contact as soon as possible.
The situation at New Engineering underscores the ongoing challenges within the engineering sector, especially for companies dealing with the ripple effects of economic pressures and industry-specific issues. The future of New Engineering now rests in the hands of Alvarez & Marsal as they navigate the complexities of this administration process.
