News

Cope Allman, the Portsmouth-based healthcare packaging group, has rescued rival Jaycare from administration with the purchase of the rigid plastics manufacturer from administrator KPMG.

More than 200 jobs were put at risk when Newcastle-based Jaycare went into administration in January.

Cope Allman managing director John Sidnell said "some rationalisation" at Jaycare would be "inevitable", but anticipated the "majority of jobs will be secured".

Manufacturing is expected to continue at Jaycare's Newcastle site and Cope Allman's Portsmouth base.

Cope Allman commercial manager Adam Dowse said the firm shared a number of customers with Jaycare and offered similar services, including injection blow moulding, extrusion blow moulding, injection moulding and secondary decorating.

Cope Allman has sent its management team in to review Jaycare's business today (3 March).

Mark Firmin, joint administrator and KPMG restructuring partner, said: "The Jaycare operation complements those of Cope Allman so I'm satisfied this is a successful transaction for both sides."

Cope Allman's purchase of Jaycare was supported by the One NorthEast development agency, which advised management throughout the process.

Cope Allman reported a pre-tax profit of £190,449 for the year to 31 December 2006, compared with a £460,000 loss in the previous year, on sales down almost 10% to £11.8m.

Jaycare was acquired in 2004 by Phoenix Equity Partners, before it was bought out in April 2006 in a £4m refinancing backed by Allied Irish Bank and HBOS.

Jaycare reported an operating loss of £426,000 in the year to 1 April 2006, the last period for which accounts are available. Some £11.8m of its £17.8m turnover was generated in the UK with the balance from the rest of the world.