An aircraft dismantling firm recently saved from administration is plotting a diversification strategy to secure the future of the business.
Earlier this month Sycamore Aviation called in the administrators following a downturn in business. But last week another aviation specialist, Glyn Wall Ltd, took over the company in a move which safeguarded the jobs of Sycamore’s six staff.
Previously Durham Tees Valley Airport-based Sycamore had focused on “tear-down” work, which involves stripping away and recycling high-value aircraft parts such as engines and electronic components.
While this will remain the company’s core business, new owners Glyn Wall and Andy McCormick are also looking at ways of recycling and reusing parts which have traditionally been scrapped. Meanwhile Kevin O’Hare will stay on in the business to run the tear-down operation.
Mr O’Hare said: “Glyn and Andy have a vast and varied aviation experience. We are looking to at revenue streams that will give us a steady flow of work and ease our cashflow.
“The tear-down market can have peaks and troughs so we need other strings to our bow. Rather than have all of our eggs in one basket, the company will offer other aviation services that will be complementary to our tear-down work.”
He said turnover projections were being finalised as part of a wider business plan, which will explore a range of potential revenue streams for the company. Mr O’Hare said he was “hopeful” that jobs would be created as a result of the takeover, which will see the Sycamore brand retained.
“It’s very early days,” he said. “There has been a lot to sort out and we are expecting work to come in in the new year. “We see a way forward for the business and that’s encouraging.”
A former pilot for airlines including Jet 2 and Thomas Cook, Mr O’Hare launched Sycamore in 2012 and a year later secured an investment package worth more than £750,000. But the firm, which had previously generated annual revenues of £1m, saw its order book thin considerably as airlines cut back on scrappages.
Sycamore is part of Durham Tees Valley Airport’s grand plan to create an aviation-related business hub on the site after the loss of several flights triggered a significant drop in passenger numbers.
Following the takeover by Glyn Wall Ltd, Durham Tees Valley Airport said in a statement: “As our masterplan for the future of the airport and the overall site development made clear, we believe there are substantial business opportunities for attracting aviation-related activities - including aircraft dismantling and recycling.
“We are pleased that the business of Sycamore Aviation has now been acquired by Glyn Wall Ltd and look forward to working with the new company in taking forward their business plans.”
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