Engineering firm jobs fears

The future of 250 engineering jobs at a Cardiff-based firm hang in the balance after the business was put into administration.

Inframan Ltd - which employs 900 people across the UK - is currently looking for a buyer

A spokesman for receivers Grant Thornton said the business had been "constrained" by its lack of working capital, making it vulnerable to adverse cash-flows.

Union officials are now meeting with management to discuss details of the decision.

What they need is an equity investor or a larger entity to come in and provide more working capital

Richard Hawes, administrator

Inframan was formed out of a management buyout of part of Hyder - previously part of Swalece - the energy utility company.

The firm has an annual turnover of £60m, handling electrical and mechanical maintenance contracts for the Ministry of Defence, the Highways Agency and local authorities.

The company employees nearly 700 workers at regional offices in Dundonald in Scotland, Exeter, Newbury, Sleaford in Lincolnshire, Gravesend in Kent and Coulsden in Surrey.

Inframan was created out of the Hyder group

Despite being placed in administration, Grant Thornton were optimistic about the situation.

"They aren't obviously going to be taking on people, but they still have their jobs, the people that are there," said administrator Richard Hawes.

"The competition of this business such as Balfour Beatty is much larger. They have more financial muscle.

"This is a business without any assets so it's difficult to attract a lender. What they need is an equity investor or a larger entity to come in and provide more working capital.

"It's difficult for a business this small to balance incomings and outgoings at any given period."

'Nurture business'

"We will be seeking to stabilise the business with the support of employees, customers and suppliers, whilst analysing the business and approaching potential purchasers.

"The company has blue-chip contracts, a skilled management team and an experienced workforce and should prove attractive to a larger entity with the financial muscle to nurture the business."

The creation of Inframan from Hyder Plc took place in 2001, when managers bought on the electrical engineering business.

The firm's leading 25 contracts make up 80% of the business, with the average contract running for two to five years.