Welshpool engineering firm in administration
An engineering firm with a major base in Welshpool has been placed in administration.
Dytecna Limited is based Malvern in Worcestershire, but has a base on the Offa's Dyke Business Park which employs dozens of people.
The company is to continue to trade while administrators manage it as a going concern, while attempting to sell the business.
Dytecna provides design, engineering and manufacturing services predominantly to the defence industry, and employs 150 staff.
Its Welshpool operation is the group's centre of excellence for design, manufacture and testing of software and electronic systems.
While the exact current employment figure at the site has not been revealed, at its peak the Offa's Dyke site employed around 50 people.
It has blamed a deterioration in trading for its collapse into administration, adding that the move had placed "unsustainable pressure" on the business and its current financial structure despite it enjoying a loyal customer base and a long and profitable trading history.
Attempts had been made to bring in external investment, but when that failed to materialise, the company's management were forced to place the company in administration while a new buyer was sought.
Philip Watkins, a joint administrator with FRP Advisory, said: "We are highly focused on working with Dytecna's staff, customers and suppliers and engaging with interested parties, while seeking a suitable buyer.
"Dytecna is a business with its roots tracing back to 1947 and has enjoyed a good working relationship with a number of loyal clients over the years. In line with trading conditions affecting similar firms in its sector, the business has had to manage unsustainable pressure on its cash flow.
"The business maintains a strong order book and will aim to continue to deliver the high level of service for which the business is known.
"We would invite interested parties to make early contact."
In the 16 months until March 31 last year, Dytecna achieved turnover of £22.4 million, and was in the black, drawing in a profit of £221,779. It also has a site in Fareham in Hampshire.
