Fifty-five jobs have been saved at a manufacturing firm after a takeover by managers.
Bosses of Stafford-based engine cooler-maker Spiro-Gills have bought the company for just under £1.5 million, three weeks after it slipped into administration.
Managing director Steve Mottershead, pictured, said the company and sister firm Spiro-Gills Products fell on hard times because of huge costs from a final salary pension scheme.
However, he believes there is a chance to grow its £10 million revenues and increase profitability in a market boosted by soaring oil prices and water bills.
Mr Mottershead said: "Both companies were saddled with a big final salary pension scheme, so they went into administration.
"Myself and the other directors decided to buy it out because it was a good business with a good order book with good prospects.
"What we make is about the best in the UK, if not the world, and we saw an opportunity to safeguard jobs, so we took it."
He added: "We have got money invested in the business, but we are comfortable with it.
"We are very busy at the moment. We have got a substantial order book for the next few months and we are looking to get more work from September onwards."
A management team lead by Mr Mottershead and operations director Paul Hallam have bought the fixed assets, debtors, stock, work-in-progress and trade name of Spiro-Gills.
The deal for the company, which makes heat exchangers, engine coolers and tubes for oil refineries, was signed on March 20.
Spiro-Gills, which is based on St Albans Road, currently turns over £10 million, but the new management team have set a target to grow to £13 million.
They have already cut costs by taking up an option to reduce the size of the firm's premises and there are plans to become more profitable with a new shift system.
Mr Mottershead said he aims to pay off the investment through profits made in the first five years.
He said the rising price of oil, which peaked at 142.26 a barrel last week, and dwindling water supplies, present an opportunity for growth.
He explained: "The fact that oil prices are so high helps us.
"We supply to the oil industry and high oil prices suggest companies can afford to spend.
"Also, it is obviously a safety-critical business, so if there is something you need to sort out you have to get it done.
He added: "Water has traditionally been used if you have something that needs cooling down.
"But the world is becoming short of water, so it is becoming more expensive to use and more people are turning to air.
"It is an ever-growing market. As resources become more sparse, air products become more key."
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Source: The Sentinel
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