Morgan Tucker : Newark-based engineering firm goes into administration

Newark-based engineering firm Morgan Tucker has gone into administration, with the loss of 65 jobs.

It is understood that it had sustained losses following an expansion into the Middle East

Morgan Tucker has for years been a major success story in Newark and had undergone a number of expansions.

Morgan Tucker also has offices in Nottingham, London, Leeds, and Oman.

No-one was answering the phones at any of the company's UK offices today and the Northgate offices appeared deserted.

FRP Advisory, a business advisory firm, have been appointed as administrators.

A statement from The Foresight Nottingham Fund, which invested in Morgan Tucker in April 2015, said: "The Foresight Nottingham Fund invested in Morgan Tucker to fund bolt-on acquisitions.

"Morgan Tucker had experienced organic growth initially in the UK, however it suffered significant losses when expanding into the Middle East.

"It is with considerable regret that the decision to appoint FRP was made at a meeting of the company’s board last week."

Newark and Sherwood District Council this afternoon confirmed that it had been supporting organisations considering a rescue package for Morgan Tucker, but that the firm had ceased trading. It will also try to recoup as much money as possible from a loan it gave the firm in 2015.

Since its inception in 2005, Morgan Tucker expanded to become an agile engineering consultancy providing expert services in highways, traffic and transportation, civil engineering design, structural engineering design, planning and environment, building services design, rail infrastructure and masterplanning.

It is an independently-owned business that prided itself on a client-focused service.

Morgan Tucker’s stand-out projects have included providing transport services for the Lincoln Transport Hub, a full traffic and civil engineering service for Ballymore’s £120m London City Island development and working in partnership with KGDMT and Tusker Engineering on a £20m hotel resort in Oman for Alila Hotels and Resorts.

Just this year the company made it into the NCE100 which recognises the top 100 civil engineering practices in the country based on a set of criteria that New Civil Engineer defines a great civil engineer and a great civil engineering firm.

Its founder, Matthew Tucker, stepped down as managing director in February this year.

Council will aim to recoup loan

A spokesman for Newark and Sherwood District Council said it was concerned about the retention of jobs "which are important to Newark and Sherwood's economy".

He added: "Morgan Tucker employs around 70 staff, many based at the head office in Newark in highly skilled roles within the engineering consultancy field. Projects worked on by Morgan Tucker include the Olympic Park in London.

"Due to a number of complex issues, the business was not trading successfully and the council has been involved, over the last few weeks, to support organisations considering a rescue package for the business. The safeguarding of the employee roles and the business were at the centre of any consortium efforts to allow the business to continue trading.

"Despite these efforts, the company gave notice of intent to dissolve the business and this is the current position.

"In 2015 the council agreed to provide a loan to Morgan Tucker on the basis of a business plan showing a healthy profit margin and plans to grow the business. The council will now be seeking to recoup as much of the outstanding loan balance as possible."

A statement from FRP Advisory said: "Partners from FRP Advisory, the business advisory firm, have been appointed as administrators to Newark-based Morgan Tucker Ltd, the engineering services business with branches in Nottingham, Leeds and London.

"The company had faced severe financial pressure for a number of months and had sought new investment which ultimately did not come to fruition.

"The company engaged consultants from FRP Advisory to seek buyers for the business, although, despite interest from number of parties, this was not successful. With cash-flow becoming unsustainable the company was subsequently left with no viable alternative other than to seek the protection of administration.

"Upon appointment of administrators, the company ceased trading and all 65 staff were made redundant. The priority of the administrators for the time being is to assist those made redundant with their timely applications to the Redundancy Payments Service.

"The administrators will seek to realise the company's assets in accordance with their statutory duties."

Morgan Tucker was also working on Severn Trent's £60m sewer renewal system in Newark.

A spokesman for Severn Trent said: “We worked with Morgan Tucker as they’re a local company on our project in Newark.

“We’re currently reviewing our situation, so we can make sure that, going forward, this has no impact on the scheme.”