Buyout success for Kilwinning engineering firm
A Kilwinning engineering firm has entered a new era following a successful management buyout, backed by Business Loan Scotland and Team North Ayrshire.
John Murphy, former General Manager at William Engineering, is now the proud owner of new firm, Murphy Engineering (Scotland) Ltd, based in Kilwinning’s Nethermains Industrial Estate.
Murphy Engineering came to fruition earlier this year to facilitate the buyout process of William Engineering following the retirement of owner, Maureen Harrison.
And on Friday, the new business welcomed Council Leader Joe Cullinane and members of the Council’s Business Growth Team to mark the beginning of its next chapter.
Established in 2007, William Engineering had been providing a complete specialist metal engineering service - from design to manufacturing. The business developed a first-class reputation in the manufacturing of stainless steel products for many clients including shop fitters, retailers, manufacturers, food producers and local authorities - to name only a few.
For the last 10 years, John Murphy had been successfully running all of the day-to-day operations, building up an impressive reputation for delivering high quality products on time and to tight specifications.
But with the news earlier this year of Maureen’s plans to step down, fears were raised over the future of the business and its 12 employees.
John Murphy decided to take matters into his own hands and began exploring opportunities for a management buyout.
John approached Team North Ayrshire – the public, private and third sector partnership offering a single point of contact for business support within North Ayrshire. Team North Ayrshire worked with John to successfully secure financial assistance from Business Loans Scotland to aid his ambitious plans.
The buy-out process of William Engineering was officially completed in June 2017 and marks the first ever buyout assisted by Business Loans Scotland. John then transferred its assets over to his new firm, Murphy Engineering, to start a new chapter for the business.
North Ayrshire Council Leader Joe Cullinane, said: “We are absolutely delighted to have been able to assist John with his bold and ambitious plans. Thanks to his determination it has allowed a successful firm to remain in business here in North Ayrshire and ensured job security for its hard-working employees.
“From meeting John and his team last week, it’s clear they all share his enthusiasm and passion for the future growth of the business.
“We will continue to work alongside them to ensure their growth ambitions are realised.”
John is currently working with Team North Ayrshire to develop plans for the future, including succession planning which will allow his son, a second year apprentice, to progress onto a graduate level apprenticeship - and maybe one day take over from his dad.
John has also been identified for a mentoring programme, delivered through the Ayrshire Chamber, which will build his leadership skills and members of his team are also going through further development training.
John Murphy, Managing Director of Murphy Engineering, said: “I am absolutely delighted with the support and help given to me by RJ Hart Accountants, Team North Ayrshire and Business Loans Scotland. I can’t thank them enough for their hard work in ensuring my management buyout was a success.
“I look forward to many more years providing a top quality service to all of our current customers and new customers going forward. I will, at every endeavour, put forth my utmost to make this new company a great success for all involved.”
Andrew Dickson, Fund Manager from Business Loans Scotland, added: “It is well documented that access to capital remains a major hurdle to many small and medium sized businesses which are looking to start up and grow. Often, our funding can make the difference between a business struggling or flourishing and that in turn will have a positive impact on employment, profitability and making communities stronger. I am delighted the Fund has been able to support Murphy engineering complete their management buyout and safeguard 12 jobs.”
Posted on Wednesday 16th August 2017