Operating losses faced

From the archive, first published Tuesday 20th Mar 2007.

Oilfield services Global Marine Energy has placed one of its subsidiaries into administration after it announced a succession of contract slippages and losses of major orders.

The Shipley-based business said that NIM Engineering is now facing a period of significant operating losses going forward against a total order book of less than £1 million.

The short term visibility of NIM's contracts and the high cost of its operations has led to the board deciding that it no longer support the business.

Mazars LLP is in the process of being appointed as administrator to NIM.

The group, who design and manufacture oil plants all over the world, expects that the write-off of the non-cash inter-company creditor balance with NIM will be in the region of approximately £1.2 million and that NIM's trading losses have increased by a further approximately £0.3 million since December 6.

The company stressed that beyond the operating losses there are no additional financial impacts on the group.

Global Marine will now focus largely on its American company Patriot, which currently boasts an order book of $122 million.

Paul Findlay, chief executive said: "The administration of NIM is unfortunate but became necessary as the operations were non-core and were not performing in line with expectations.

"These businesses absorbed both management time and cash which can be better used elsewhere in the business."