Consulting

FRPs Restructuring Advisory team executed an accelerated sales process for Formula Plastics, an automotive plastics manufacturer, in response to significant challenges within the automotive sector. Founded in 1996, Formula Plastics specializes in high tolerance precision components through plastic injection moulding, primarily serving the automotive industry. The company faced severe cash flow issues exacerbated by a postponed main contract and broader market uncertainties affecting electric vehicle production, which constituted 90% of its projects. The director had previously attempted to strengthen cash flow through personal loans and an unsuccessful share sale, but the delay in contract commencement left the company unable to sustain operations. In light of these challenges, FRP was engaged to facilitate a swift sale of the companys business and assets. The team, led by Partner Allan Kelly and Director Shaun Hudson, initiated a confidential and accelerated marketing process. They reached out to over 700 potential buyers, ensuring critical payments were made to maintain operations during the process. Within just one month, they successfully negotiated a sale to Formula Components Limited, appointing themselves as Joint Administrators. The outcome of this intervention was the successful sale of Formula Plastics, which preserved 34 jobs and ensured continuity of operations with minimal disruption to ongoing projects. This strategic move not only safeguarded local employment but also maintained supplier relationships and reinforced resilience within the manufacturing sector. The sale allowed Formula Plastics to continue trading under new ownership, thereby securing its long-standing reputation for quality and expertise in the industry.