Sale of Mc2 saves 216 jobs
Based in Stockton on Tees, MC2 Technical Recruitment specialises in providing contract, temporary and permanent staff to clients operating in the oil and gas and renewable energy sectors. It was placed in the hands of joint administrators Andrew Haslam and Gillian Sayburn of Begbies Traynor Group (“BTG”) in Newcastle upon Tyne in August who, with the advice and support of Ryecroft Glenton Corporate Finance immediately secured a sale of the majority of the business to national recruitment business, Jark Plc.
Joint administrator Andrew Haslam commented: “The company established itself in the Teesside area recruiting specialist contractors into the oil and gas industry, both at home and abroad. In autumn 2013, it acquired the Leeds-based Network Employment Consultancy, which places temporary staff within and around Yorkshire. Unfortunately, following the loss of a number of contracts, the core Mc2 business became unsustainable and the directors had no alternative other than to seek to protect the successful part of the business, NEC, along with its employees and temporary workforce.
“Working with Carl Swansbury and Abu Ali of Ryecroft Glenton Corporate Finance, we were able to swiftly conduct a marketing exercise and were successful in identifying a strategic buyer for NEC. Complementary recruitment company Jark plc has acquired the entire Network Employment Consultancy business, securing the operation of NEC’s three offices and all staff associated with this division of the business. Unfortunately, we were unable to find a buyer for the Teesside operation, resulting in the closure of the office and the loss of eight jobs.”
Mr Haslam continued: “The assistance and support of funders, the management team, Ryecroft Glenton Corporate Finance and the other professional advisers engaged was vital to ensure that at least one division could be rescued in a very short timescale, and we wish Jark Plc every success.”
Carl Swansbury, Partner of Ryecroft Glenton Corporate Finance, comments: “Mc2 was founded in 2006 and delivered substantial turnover and earnings growth in the years that followed. In April 2013 Mc2 acquired a successful Yorkshire based recruitment business, NEC.
“Earlier this year Mc2 lost two of its most notable clients, which had a substantial impact on Mc2’s performance, profitability and cash flow, hence the company being placed into administration. NEC, which was run as a separately branded business within Mc2 is a good business, with an experienced management team and team of employees. The company operates from four offices and has a long standing client base, along with a substantial bank of experienced temporary workers and therefore I knew that the business would be of interest to a number of strategic partners.
“Despite the circumstances and extremely challenging timetable we accepted the engaged to advise and within seven business days we were able to identify national staffing business, Jark Plc as the ultimate buyer for the business, which has enabled NEC to continue in business, whilst securing the employment of its 200 temporary workers and 16 direct employees.”
Established in 1996, the Jark Group is a c. £80m turnover, national staffing business with branches coming the UK and Northern Ireland and offers a wide range of flexible recruitment services with divisions specialising in construction, driving, healthcare, industrial and public sector.
John Buckman, Chairman of Jark plc, comments: “NEC is a perfect fit for the Jark Group. We are very pleased to welcome NEC and its experienced staff to the Jark family and look forward to realising the added value the acquisition brings to the group in the coming months”.