Positive change for Modular Automation

Assembly Automation

ISSN: 0144-5154

Article publication date: 1 September 2003




(2003), "Positive change for Modular Automation", Assembly Automation, Vol. 23 No. 3. https://doi.org/10.1108/aa.2003.03323cab.004



Emerald Group Publishing Limited

Copyright © 2003, MCB UP Limited

Positive change for Modular Automation

Positive change for Modular Automation

Keywords: Modular Automation

A more secure future financial situation for Modular Automation seems likely as a result of the Small Heath, Birmingham company going into pre-package receivership. It has been bought out by a management group of investors, including the former Technical Director, Trevor Dixon and is now a subsidiary of CH Bailey plc. The new company name is Modular Automation International Ltd, but still trading as Modular Automation.

Modular Automation is strongly dependent on the UK with just 20-30 per cent of its business being overseas. Over the past years, like many others the Small Heath company has suffered from the decline in "UK Manufacturing" and particularly the reticence of UK companies to invest in automation. The consequent lack of orders lead to an increasing debt burden on the business. However, following the transfer of the business, that "mill stone" has been removed. The new company is now in a much more stable financial position, and to quote, "has a positive cash flow".

The business of Modular Automation in supplying effective solutions of automation to a number of manufacturing industries will be maintained as before. The intention is to make the transition as "seamless as possible", and particularly as regards its existing customers, who it will be able to fully support. The fact that most of the staff are being retained with very few "lay offs" is evidence of this intention. The staff levels are now put at 60 compared to a peak of 100 before 18 months, but most of that drop was through attrition as the business declined in response to the reduced activity in UK manufacturing.

It is hoped that the business will continue to operate from the existing purpose built leased premises in Small Heath, but negotiations on the front are still underway.

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