Wilcox-Seadyke sinks despite profit rise
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• 'Iroubled bodybuilder Wilcox-Seadyke has gone into receivership despite making an operating profit over the past two months. Receiver Cork Gully went in at the end of last week and is dealing with enquiries from at least two potential buyers.
Commercial director Barry Fisk says the company's collapse is "even more unpalatable" when recent action taken to reduce overheads, such as centring on a central trailer manufacturing site at Wisbech, were beginning to yield increased profit. 'rhe company has orders worth more than 1.5m on its books and Fisk says the directors were confident of being able to trade out of the situation. "We have a feel for the market after all the years we've been in it."
Wilcox-Seadyke has been dogged with financial problems and backers Dartmore Investment and Sun Life, which put up money for the management buyout in January, fired two directors in September. The institutions said they blamed the two — chief executive Malcolm Llewellyn and finance director James Longley — for the group's disappointing performance.
Although the company has tried to cut overheads, the stagnant property market has meant that five properties have not yet sold, and the company's gearing remains high. Receiver Mark Palios is keeping the company trading at the moment. 0 Attempts to put together a rescue package for bodybuilders Besco failed last week when NatWest sent the receivers in on 27 November. Administrative receiver Nicholas Godden of Cork Gully says the bank has been persuaded to continue lending money to Besco to complete its orders. This could provide work up to February or March next year, and Cork Gully will be seeking a buyer for the firm. Godden says some interest has already been shown.
Around half a dozen office staff have already been laid off, but Godden is hopeful the others will be kept on.