The sale of a North East medical testing and diagnostics business out of administration has secured the future of the company and safeguarded all 32 jobs.
Andrew Little and Gillian Sayburn, partners at BTG, were appointed joint administrators of AccuLabs Diagnostics UK Limited on 16 June.
Prior to the administration, the Wynyard-based business was marketed for several weeks, attracting four bids. The successful offer came from the company’s incumbent management team, securing the future of the business and preserving all 32 jobs.
The sale also represents a positive outcome for creditors, with a substantial return expected for unsecured creditors.
Established in 2010, AccuLabs Diagnostics UK provides medical testing and diagnostic services to clients across the healthcare sector.
The company experienced a challenging trading period, which placed pressure on its financial position despite ongoing support from its directors. After exploring a range of restructuring options, including a proposed Company Voluntary Arrangement (CVA), it was concluded that the appointment of administrators was the most appropriate course of action to safeguard the future of the business and maximise value for stakeholders.
The sale out of administration provides a platform for the business to continue trading, with an existing pipeline of contracts, including wellness testing services and projects related to weight loss medication testing and monitoring.
Andrew Little, joint administrator and partner at BTG, said: “We are very pleased to have secured a sale of the business in a deal that protects all 32 jobs and allows AccuLabs to continue operating under the existing management team.
“The level of interest received during the marketing process demonstrates the underlying strength of the business. The transaction also delivers a positive outcome for creditors, with a substantial return anticipated for unsecured creditors.”
Debbie Banks, chief executive of AccuLabs Ltd, said: “After a challenging period we’re pleased to have secured the future of the business and to be moving forward with the support of our experienced team. It’s very much business as usual for our customers and partners, and we’re excited about the opportunities ahead.”
BTG, formerly Begbies Traynor, is a UK-wide financial advisory and restructuring group, providing insolvency, corporate finance and real estate advisory services.
