It was announced today that the trading business of the armoured vehicle firm has been sold out of administration to commercial vehicle builder Martin Williams (Hull) Ltd. They are the same company that bought it when it previously went into administration three years ago.
The move comes a month after Blair Nimmo and James Lumb, from KPMG’s Restructuring practice, were appointed joint administrators of Penman MW Ltd after cash pressures made it unsustainable.
This morning they revealed that the 16 remaining members of staff will now be transferred to the new owners.
And it was also confirmed that the administrators have retained the intellectual property in Penman MW Limited’s armoured vehicle system and are currently exploring sale options.
Blair Nimmo said: “The Penman business has a rich heritage in Dumfries and its team of employees are renowned for their knowledge and innovation in the field. Despite the company’s best efforts, cashflow challenges meant the business in its previous form could no longer find long-term sustainable solutions, leaving it no other choice but administration.
“Today’s announcement secures the future of 16 highly skilled roles in Dumfries. The buyer has previously invested in and understands the strength and growth potential of the Penman business.
“Our focus now as administrators will be on securing the sale of Penman MW Limited’s armoured vehicle intellectual property.”
South Scotland MSP Colin Smyth has given the news a cautious welcome.
He said: “There will be anger from those made redundant just a few weeks ago at the uncertainty they have faced and I hope those who haven’t found work will be taken back on quickly”.
“I will also be seeking assurances from the owners that they have a long term commitment to the Dumfries site which remains a strong asset for any engineering firm. Penman have been in Dumfries since 1859 and these are jobs our town cannot afford to lose”.
Penman Engineering was set up in 1859 and specialised in the design, construction and software development of security and armoured military vehicles.