Second Norfolk firm files for administration, with 80 jobs on the line
PUBLISHED: 11:15 27 June 2019 | UPDATED: 15:37 27 June 2019
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Another Norfolk firm has filed for administration, putting the jobs of around 80 people at risk.
Mussett Engineering in Loddon has appointed insolvency practitioners CBA Business Solutions to file for its administration.
The company, which was founded in 1978, manufactures precision components for light and heavy engineering.
A spokeswoman from CBA Business Solutions could not confirm why the company based at Loddon Industrial Estate had filed for administration, or how employees would be impacted by the news.
The news comes just a day after construction firm Gill Building, based in Norwich, was placed into administration, making 48 people jobless.
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Mussett Engineering is a subsidiary of Mussett Aerospace, which has not been placed into administration.
Another company parented by Mussett Aerospace, Mussett Composites, has also remained out of administration.
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The latest accounts for the engineering company filed to Companies House paint a difficult picture for the firm.
Although the company presented a profit after tax of £291,455 for 2017, it had liabilities totalling £756,134.
That year the company was worth millions, with a combination of stocks, money owed by debtors, and money at the bank totalling £2.24m.
However, it did owe £3m to creditors which had to be paid within the following 12 months.
According to the report, these figures include a £728,718 debt lent to its fellow subsidiary Mussett Composites.
The loan was made as a "doubtful debt", meaning the company was aware it was unlikely to be paid the funds back.
Despite this, the report reads: "The directors are confident the measures that they are taking […] will be able to generate cash flow to enable Mussett Engineering Limited to operate within its existing facilities," read the report.