News: Kiveton Park Steel out of administration

The new owner of Kiveton Park Steel is looking ahead to a brighter future at the award-winning Rotherham-based manufacturer, now that the uncertainty around being in administration has been lifted.

Henry Dickinson, the owner of several UK industrial businesses, concluded a deal to buy the business this week which allows for the business to continue to trade as Kiveton Park Steel from the same 15 acre premises Dog Kennel Hill in Kiveton Park and secures job opportunities for around 50 staff under new ownership. It follows nine months of continuous trading in administration which had provided ongoing work for 100 staff during one of the most turbulent periods of recent history for the UK steel industry.

Established in 1922, the family company originally produced items used within the UK mining industry and also supplied specialised products into the defence and aircraft industries. It is very widely regarded around the world as producing the highest quality cold drawn steel bar, used in a variety of technically demanding applications in the automotive, aerospace and high-end engineering industries.

Phil Pierce and Ben Woolrych, partners of FRP Advisory, were appointed as administrators last year after the business, which traded under continuous family ownership, faced unsustainable pressure on its cash-flow due to a sharp deterioration within the specialist steel market.

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Key customer supply agreements were arranged which ensured the company had sufficient funding to continue to trade until the end of June 2016 whilst the joint administrators marketed the business for sale. FRP Advisory negotiated with a total of 16 different parties interested in the business and assets, resulting in a number of competing offers out of which the offer from Mr Dickinson provided the best long-term solution for the business' on-going trading and assets, its long term loyal customers, staff and the company's creditors.

Henry Dickinson, owner of Kiveton Park Steel, was grateful for the support from key customers such as Delphi Automotive and added: "I would like to acknowledge the support of Sheffield City Region in offering the business significant grant funding under the Business Investment Finance initiative, which helped enable the acquisition to take place, and the constructive approach taken by Community Union and employee representatives in these challenging circumstances.

"Approximately 50 of the 100 jobs will be safeguarded. As many customers have been lost during the Administration process due to fears the business would be closed, a significant number of redundancies are required to allow the business to trade on an even keel."

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Phil Pierce, partner at FRP Advisory and joint administrator, said: "The sale is a great result not just for Kiveton Park Steel, Sheffield and the wider Yorkshire economy, is also encouraging for the steel industry across the UK which continues to meet the challenge of global competition.

"Amid the wider acute political uncertainty around the UK's relationship with the EU, the sale to Mr Dickinson may provide a signal of confidence in the regional economy which will be welcome to the people of Sheffield and South Yorkshire.

"We are grateful to the support of Kiveton Park Steel's customers throughout this long process, which allowed the administrators the time to secure the best possible long term outcome for the ongoing business while ensuring 100 staff were kept in work both through the critical three month period up to Christmas last year and then another six months this year.

"We would particularly like to thank all staff for their dedication and loyalty, helping the business to continue to deliver the quality products its customers have come to expect. We wish all those involved with the on-going business the very best for the future under the new ownership of British manufacturing and engineering owner-operator Henry Dickinson."

The transaction has been supported by ABN AMRO Commercial Finance. Its comprehensive asset based lending package provides acquisition funding for the deal and growth finance for the business.

ABN AMRO Commercial Finance was advised by Dean Gormley, banking & finance partner at Irwin Mitchell.

James Elliott, business development manager at ABN AMRO, said: "The UK steel industry continues to face some very tough trading conditions and this rescue deal therefore provides some much needed positivity for the sector. Henry Dickinson is looking to take the business forward and is confident that Kiveton Park Steel, with its processing capability and loyal customer base, has a viable future."

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News: Buyer found for Kiveton Park Steel

A deal appears to be close for Kiveton Park Steel, the award-winning Rotherham-based manufacturer that entered administration at the end of 2015.

Established in 1922, the family company originally produced items used within the UK mining industry and also supplied specialised products into the defence and aircraft industries. It has developed its unique range of production equipment to ensure that the 227,881 sq ft manufacturing facility at Dog Kennel Hill in Kiveton Park is suited to supply chain requirements for critical parts within the global automotive markets, principally supplying Tier 1 and Tier 2 companies.

Phil Pierce and Ben Woolrych, partners of FRP Advisory, were appointed as administrators after the business faced unsustainable pressure on its cash-flow due to a sharp deterioration within the specialist steel market.

A prospective purchaser was selected for the historic firm by the administrators in April and now Sky News claims that Henry Dickinson, an owner of several UK industrial businesses, is close to securing a deal that is expected to save roughly 50 jobs from workforce that was over 100 before the company entered administration.

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Turnover for the year ending June 2011 was up by 50% to £27m, by June 2014 this was back down to £19.4m. For the year to June 30 2015, turnover had fallen to £16.2m and the business reported a loss of £1.3m.

Key customer supply agreements were arranged which ensured the company has sufficient funding to continue to trade until the end of June 2016 whilst the joint administrators marketed the business for sale and continued to engage with third parties who have been interested in investing in the business. Automotive suppliers, Delphi and TRW are the company's main customers.

The agreements secured jobs for the approximately 100 staff associated with the business.

A progress report from FRP Advisory states that a further three expressions of interest were received since the initial 13 reported in November. More parties have been interested in the assets of the business on a break up basis but this has not been pursued.

The administrators stated: "We have received offers from four interested parties which we have rejected because the offers were not considered to offer best value for the assets. However, we have received one offer from another interested party which is acceptable.

"The prospective purchaser has provided evidence of funding and has reached agreement with Delphi in relation to ongoing supply.

"We are not in a position to reveal the level of offer or the identity of the prospective purchaser, however, we can confirm that the prospective purchaser is an unconnected third party."

It was hoped that a deal could be completed by the end of April 2016. It was agreed that if the sale completes, the new business will take on the assets whilst the trading liabilities of the current business are settled and the company is liquidated.

If the sale falls through, the current business will be wound down and assets will be sold on a piecemeal basis.

Chartered surveyors, Walker Singleton has been engaged by the administrators and has scheduled an auction in August for Kiveton's processing facility. The company said: "The business is still trading; during this period the potential of a business sale remains. Preparation for an auction will commence once trading ceases. Further updates will be made over the forthcoming weeks."

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News: Agreements extended at Kiveton Park Steel

Supply agreements have been extended at Kiveton Park Steel, allowing the award-winning Rotherham-based manufacturer to continue to trade whilst it is in administration.

FRP Advisory, the restructuring and advisory firm appointed as joint administrators to Kiveton Park Steel Limited has confirmed that it has secured a further extension to key customer supply agreements which ensures the company has sufficient funding to continue to trade until the end of June 2016 whilst the joint administrators market the business for sale and ongoing engagement with interested parties continues.

Established in 1922, the family company originally produced items used within the UK mining industry and also supplied specialised products into the defence and aircraft industries. It has developed its unique range of production equipment to ensure that the manufacturing facility at Dog Kennel Hill in Kiveton Park is suited to supply chain requirements for critical parts within the global automotive markets, principally supplying Tier 1 and Tier 2 companies.

Phil Pierce and Ben Woolrych, partners of FRP Advisory, were appointed as administrators after the business has recently faced unsustainable pressure on its cash-flow due to a sharp deterioration within the specialist steel market.

The supply agreement extends an earlier agreement secured in early October that was to run until the end of December 2015. The six month supply agreement extension secures jobs for the approximately 100 staff currently associated with the business. The supply agreement supports the joint administrators' on-going engagement with third parties who are interested in investing in the business.

Automotive suppliers, Delphi and TRW are the company's main customers. As part of the agreement, they agreed to pay their pre-administration debts of around £1.2m which has helped Kiveton Park to continue to trade. This ongoing trade has enable the administrators to supply other customers, assisting the recovery of the business.

A report from the administrators shows that 13 expressions of interest have been shown in the award-winning business and assets, with eight still "live." Many more parties have been interested in the assets of the business on a break up basis but this has not been pursued.

The report said: "A number of site visits have been conducted and these continue to be arranged for interested parties. Discussions are ongoing with a number of interested parties and information is being provided for them to consider the options further."

The joint administrators said that it continues to review staffing levels but the securing of the latest extension to the supply agreement means that the administrators have been able to retain the 100 staff.

Phil Pierce, partner at FRP Advisory and joint administrator, said: "The steel industry continues to feel the squeeze from a global downturn in the market so we are pleased to have secured further funding support for Kiveton Park Steel for a significant period while sales talks continue. This funding agreement will be particularly welcome to the firm's staff and their families as we enter the festive period and we are grateful for all their support during this period.

"The wider steel market remains challenging but Kiveton Park produces quality products and has loyal customers which all helps with a sound continuity of trading whilst we continue to engage with interested parties as part of the ongoing business sales process."

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News: Interest in Kiveton Park Steel

Discussions are ongoing with potential buyers of the historic Rotherham firm Kiveton Park Steel, that went into administration earlier this year.

Established in 1922, the family company originally produced items used within the UK mining industry and also supplied specialised products into the defence and aircraft industries.

Phil Pierce and Ben Woolrych, partners of FRP Advisory, were appointed as administrators after the business has recently faced unsustainable pressure on its cash-flow due to a sharp deterioration within the specialist steel market. Turnover for the year ending June 2011 was up by 50% to £27m, by June 2014 this was back down to £19.4m. For the year to June 30 2015, turnover had fallen to £16.2m and the business reported a loss of £1.3m.

The administrators secured extended supply agreements to allow the business to continue to trade as it was marketed for sale. The supply agreements helped secure jobs during this period for around 110 staff, representing the vast majority of the 120 staff associated with the business at the point of administration.

A report from the administrators shows that 13 expressions of interest have been shown in the award-winning business and assets, with eight still "live." Many more parties have been interested in the assets of the business on a break up basis but this has not been pursued.

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The report said: "A number of site visits have been conducted and these continue to be arranged for interested parties. Discussions are ongoing with a number of interested parties and information is being provided for them to consider the options further."

The report highlights the events leading up to the appointment of administrators where losses could not be covered by enough new business or cash reserves, exacerbated by a £400,000 debt when a major customer went into administration in 2014.

Large deficits in the pension scheme and a failing IT system added to the financial woes. In 2015, in harsh trading conditions, one of KP Steel's main suppliers shortened its credit terms from 60 to 45 days, impacting on cash flow.

A review of the business with the aim of significant restructuring was carried out with FRP Advisory's help in searching for new debt funders and equity providers.

In August 2015 and based on the company's financial results, a credit insurer stated its intention to withdraw cover from a number of suppliers, most notably Tata Steel - the company's main steel supplier. This "huge blow" would have left Kiveton Park Steel paying for raw materials on a pro forma basis, crippling cash flow.

With administrators called in, it is estimated that creditors are owed some £18m - a large proportion (£15m) being the pension scheme.

A meeting of creditors is due to take place on December 2.

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News: Kiveton Park Steel continues to trade

Over 100 staff are still in place as administrators from FRP Advisory secure extended supply agreements for Kiveton Park Steel, the award-winning Rotherham-based manufacturer that went into administration last month.

Established in 1922, the family company originally produced items used within the UK mining industry and also supplied specialised products into the defence and aircraft industries. It has developed its unique range of production equipment to ensure that the manufacturing facility at Dog Kennel Hill in Kiveton Park is suited to supply chain requirements for critical parts within the global automotive markets, principally supplying Tier 1 and Tier 2 companies.

Phil Pierce and Ben Woolrych, partners of FRP Advisory, were appointed as administrators after the business has recently faced unsustainable pressure on its cash-flow due to a sharp deterioration within the specialist steel market.

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Supply agreements provide funding for Kiveton Park to continue trading until mid-December whilst the joint administrators continue to market the business for sale. The supply agreements help secure jobs during this period for around 110 staff, representing the vast majority of the 120 staff associated with the business at the point of administration. The supply agreements support the joint administrators' on-going engagement with interested third parties.

The joint administrators have reviewed staffing levels since the company entered administration but the securing of the latest supply agreements mean that the administrators have retained around 110 staff and they do not envisage having to make further redundancies while the support of key customer supply agreements remain in place.

The company has been closely associated with the global automotive sector, supplying quality products in supply chains leading to diesel injection, steering, engine and suspension parts and providing a full service package for a wide range of material specifications.

The joint administrators will continue to review the financial position of the company during this supply agreement extension period whilst marketing the business for sale.

Turnover for the year ending June 2011 was up by 50% to £27m, by June 2014 this was back down to £19.4m.

Phil Pierce, partner at FRP Advisory and joint administrator, said: "We are pleased that we have secured commitment from some of Kiveton Park's key customers for the next couple of months whilst we continue with the marketing process for business. We are grateful for the support of the business' loyal, hard-working and skilled work-force during this period.

"The latest supply agreement helps underpin the funding needed to allow the business to continue to trade and service Kiveton Park's customers. The joint administrators will continue to engage with interested parties whilst constantly reviewing the financial position of the business."

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News: Kiveton Park Steel in administration

Kiveton Park Steel, an award-winning Rotherham-based manufacturer that can trace its history back to 1922 has entered administration, with over 100 staff hoping that a buyer can be found.

Established in 1922, the family company originally produced items used within the UK mining industry and also supplied specialised products into the defence and aircraft industries. It has developed its unique range of production equipment to ensure that the manufacturing facility at Dog Kennel Hill in Kiveton Park is suited to supply chain requirements for critical parts within the global automotive markets, principally supplying Tier 1 and Tier 2 companies.

The major subsidiary of Kiveton Park Holdings, which has interests in steel processing, international distribution and trading, was awarded the Queen's Award for Enterprise in 2012 as exports hit record levels.

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Phil Pierce and Ben Woolrych, partners of FRP Advisory, have been appointed as administrators after the business has recently faced unsustainable pressure on its cash-flow due to a sharp deterioration within the specialist steel market.

The business is seeking to fulfil existing customer orders through the administration and it is hoped that the joint administrators can market the business for sale. The cash-flow pressures put pay to any restructuring of the business to secure the company's future.

The company has been closely associated with the global automotive sector, supplying quality products in supply chains leading to diesel injection, steering, engine and suspension parts and providing a full service package for a wide range of material specifications.

Turnover for the year ending June 2011 was up by 50% to £27m, by June 2014 this was back down to £19.4m.

Phil Pierce, joint administrator at FRP Advisory, said: "The steel business continues to go through some tough times and it is unfortunate that a Yorkshire-based business with nearly 100 years of trading should be the latest to feel the squeeze.

"As joint administrators we will be focusing on delivering Kiveton Park's existing customer orders where possible, whilst constantly reviewing the financial position with a view to establishing a long term solution for the business in the interests of all the creditors."

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News: Kiveton Park Steel Limited wins future manufacturing award

Rotherham-based, Kiveton Park Steel Limited, a quality manufacturer of bright engineering steel bar and wire, has been recognised for its export success at the recent EEF Future Manufacturing Awards 2013.

The awards are designed to celebrate manufacturing businesses that have shown excellence in their innovation. The Engineering Employers' Federation (EEF) is a UK trade organisation dedicated to the future of manufacturing.

Established in 1922, the family company originally produced items used within the UK mining industry and also supplied specialised products into the defence and aircraft industries. It has developed its unique range of production equipment to ensure that the manufacturing facility at Dog Kennel Hill in Kiveton Park is suited to supply chain requirements for critical parts within the global automotive markets, principally supplying Tier 1 and Tier 2 companies.

Queen's Awards winning Kiveton Park Steel was named as the North East, Yorkshire & Humberside regional winner in the Export Development Award category and will go on to compete at the national finals of the EEF Future Manufacturing Awards 2013.

The major subsidiary of Kiveton Park Holdings, which has interests in steel processing, international distribution and trading, has seen export activities increase rapidly over recent years with current levels representing over 60% of total sales, initially to European markets but now extending into many deep sea destinations including Latin and South America, India and the Far East.

The company is closely associated with the global automotive sector supplying quality products in supply chains leading to diesel injection, steering, engine and suspension parts and providing a full service package for a wide range of material specifications.

Yaser Rauf of Rotherham contract manufacturing specialist, MTL Group, was named as the regional runner up for the Outstanding Achievement by a Final Year Apprentice Award.

Kiveton Park Steel website
MTL Group website

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News: Kiveton Park Steel presented with Queen's Award for Enterprise

David Moody, the Lord Lieutenant of South Yorkshire, has formally presented Rotherham's Kiveton Park Steel Limited with their Queen's Awards for Enterprise.

The quality manufacturer of bright engineering steel bar and wire won the prestigious award by demonstrating outstanding achievement in international trade over three years.

Established in 1922, the family company originally produced items used within the UK mining industry and also supplied specialised products into the defence and aircraft industries. It has developed its unique range of production equipment to ensure that the manufacturing facility at Dog Kennel Hill in Kiveton Park is suited to supply chain requirements for critical parts within the global automotive markets, principally supplying Tier 1 and Tier 2 companies.

The major subsidiary of Kiveton Park Holdings, which has interests in steel processing, international distribution and trading, has seen export activities increase rapidly over recent years with current levels representing over 60% of total sales, initially to European markets but now extending into many deep sea destinations including Latin and South America, India and the Far East.

The company is closely associated with the global automotive sector supplying quality products in supply chains leading to diesel injection, steering, engine and suspension parts and providing a full service package for a wide range of material specifications.

50% of markets are either new to the company in the last six years or are an existing market where new products have been introduced to new companies in those markets.

Turnover for the year ending June 2011 was up by 50% to £27m.

Fellow Rotherham metals specialist, C.F.Booth, also picked up a Queen's Award for Enterprise for International Trade for 2012 and entry is now open for the 2013 awards with the closing date of September 28 2012.

The South Yorkshire International Trade Forum (SYITF) is hosting a round table event later this month to help more local companies bid for the prestigious awards.

The event on August 8 is aimed at the exporting and manufacturing sector and will be facilitated by William Beckett, chairman of the SYITF and managing director of award-winning company, William Beckett Plastics.

Pictured at Kiveton Park Steel are Mick Jones, sales & marketing director; Geoff Blatherwick, deputy chairman; David Moody, Lord Lieutenant; Bill Collington, managing director; and Tony Maycock, chairman.

Kiveton Park Steel website

SYITF website

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News: Rotherham manufacturers amongst UK's best exporters

Rotherham manufacturing companies, CF Booth, Kiveton Park Steel and MTL Group, have all been named on a league table that ranks Britain's private companies with the fastest-growing international sales.

The Sunday Times HSBC International Track 200 league table is compiled by Fast Track, the Oxford company that researches Britain's top-performing private companies. It ranks companies based on the increase in export sales from the last two years of available accounts.

C.F. Booth, one of the largest independently run recycling companies in Europe, is ranked at 83rd on the list with international sales growing by 46.30% each year from £67.9m in 2009 to £145.3m in 2011.

The company specialises in metal recycling and metal ingot manufacturing of both ferrous and non ferrous metals for UK import and export. Their Clarence Metal Works on Armer Street is thought to be the largest scrapyard in Europe.

This year C.F. Booth won the Queen's Award for International Trade for an outstanding performance over the last three years. Export sales are 56% of turnover which is well in excess of industry sector averages contributing to overseas earnings growth of 81%.

Also winning a Queen's Award for International Trade this year is Kiveton Park Steel. The Rotherham company was ranked 124th on the Fast Track list with international sales growth of 33.30% each year from £12.1m in 2009 to £21.5m in 2011.

The major subsidiary of Kiveton Park Holdings, which has interests in steel processing, international distribution and trading, has seen export activities increase rapidly over recent years with current levels representing over 60% of total sales, initially to European markets but now extending into many deep sea destinations including Latin and South America, India and the Far East.

The company is closely associated with the global automotive sector supplying quality products in supply chains leading to diesel injection, steering, engine and suspension parts and providing a full service package for a wide range of material specifications.

MTL Group is ranked 150th on the list with growth in international sales increasing by 28.68% each year from £2.4m in 2009 to £4m in 2011. Since these results the firm began work on a new £9m contract and has almost doubled its export sales to £7.3m since moving to a state-of-the-art manufacturing facility in Rotherham last year.

The Brinsworth firm makes steel and aluminium parts for offshore wind farms, construction equipment and military vehicles. Customers include Caterpillar, Renault Trucks and Rheinmetall.

Dr Henry Shirman, managing director of MTL Group, said: "MTL Group has continued to grow during these challenging times through careful investment in our people and in the latest state-of-the-art equipment. This has allowed us to continue to develop overseas markets.

"To be included in the Sunday Times HSBC International Track 200 list is a massive achievement and a real testament to the hard work and effort by everyone involved with the company."

C.F. Booth website

Kiveton Park Steel website

MTL Group website

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News: Queen's Award for Kiveton Park Steel Limited

Rotherham-based, Kiveton Park Steel Limited, a quality manufacturer of bright engineering steel bar and wire, has won a prestigious Queen's Awards for Enterprise by demonstrating outstanding achievement in international trade over three years.

Established in 1922, the family company originally produced items used within the UK mining industry and also supplied specialised products into the defence and aircraft industries. It has developed its unique range of production equipment to ensure that the manufacturing facility at Dog Kennel Hill in Kiveton Park is suited to supply chain requirements for critical parts within the global automotive markets, principally supplying Tier 1 and Tier 2 companies.

The major subsidiary of Kiveton Park Holdings, which has interests in steel processing, international distribution and trading, has seen export activities increase rapidly over recent years with current levels representing over 60% of total sales, initially to European markets but now extending into many deep sea destinations including Latin and South America, India and the Far East.

The company is closely associated with the global automotive sector supplying quality products in supply chains leading to diesel injection, steering, engine and suspension parts and providing a full service package for a wide range of material specifications.

50% of markets are either new to the company in the last six years or are an existing market where new products have been introduced to new companies in those markets.

Turnover for the year ending June 2011 was up by 50% to £27m.

Bill Collington, managing director at Kiveton Park Steel, said: "The Queen's Awards for Enterprise are the most prestigious corporate awards that any UK business can win and we are extremely proud to be honoured with the award for International Trade.

"We share this award with all employees, agents and distributors working together to promote our export trade.The company is committed to continued export growth both within and beyond Europe where our key messages of, Quality – The First Priority and Excellence in Customer Service, provide the foundations for sustainable supply chain business relationships."

Fellow Rotherham metals specialist, C.F.Booth, also picked up a Queen's Award for Enterprise for International Trade for 2012.

Kiveton Park Steel website

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