Administrators in at Auto Precision

AUTOMOTIVE Precision, the car and truck parts maker, stood on the brink of collapse today as it called in administrators. The engineer based in Tonbridge, Kent, and thought to employ 400 people, said in June that it had secured long-term funding to rescue the business.

But it has emerged that a scramble to refinance again in the past few days failed. It pointed to trading difficulties to explain its situation, despite saying in September there were signs of a pick-up.

It is thought the previous funding round included about £4m to inject into the business. But this came several months later than hoped and the company lost out on a number of potential sales while it sought new capital.

Auto Precision's shares were suspended at 6 1/4p. The company has been hit by weak demand and lower prices, especially the US, while Far East competition has dented the market for car parts makers.

Pre-tax losses for the halfyear, reported in September, were £1.5m against a £1.1m deficit a year earlier. But the extent of its hardship was seen in its diminishing cashflow, which collapsed to just £288,000 from £1.6 million a year earlier.

Managing director and 27% shareholder Stefan Petszaft was unavailable for comment.

The group, which was valued at some £2 million, has been dogged by profit warnings in recent years, having floated in 1994.