UK ambulance company tumbles into administration - worked with the NHS

A major provider of independent ambulance services has been sold in a pre-pack deal that saved around 375 jobs, according to administrators. Spark Medical LTD, which is headquartered in Bromborough, the Wirral, provides ambulance services across the North West of England.

It employs 97 members of staff and numerous subcontractors, operating as many as 50 medical vehicles daily. According to the company's website, it has its own fleet of modern, fully-equipped ambulances and a team of highly-trained and qualified staff, and works in partnership with the NHS and private healthcare providers.

In August last year, the company acquired Medi 4 Ambulance Services, which provides a broad range of patient transport and pre-hospital care solutions across the south of England, and also has a substantial ambulance fleet.

But in recent times, the combined business had been hit with increased cost commitments and ongoing capital expenditure alongside a drop in revenue, which created pressures on cash flow, administrators RSM UK Restructuring Advisory said. 

This led to a creditors’ Administration application being issued on January 19 this year. Lee Van Lockwood and James Miller, both of RSM UK, were appointed as joint administrators on February 6.

They had already identified a potential buyer for Spark Medical Limited and Medi 4 Ambulance Services and a successful pre-packaged sale was completed that same day.

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RSM UK said the deal ensured the continuity of critical medical and ambulance services in the communities the two firms serve, and secured a large number of jobs for payrolled staff as well as subcontractors.

The buyer has not yet been announced. It's fairly common for companies facing financial difficulties to apply to be put in administration with the aim of completing a "pre-pack" deal with a buyer.

Sorting out the agreement before entering administration has various advantages, including allowing a "quick and relatively smooth transfer of a business" and "trading to continue uninterrupted", the Gazette explains.

Lee Lockwood, restructuring advisory partner at RSM said: “The pre-pack sale of Spark Medical Limited and Medi 4 Ambulance Services Limited ensures the continued operations of a large NHS supplier.

"The deal carries significant implications in terms of maintaining public health services and the resilience of local health services, as well as a substantial number of jobs.

"It marks a positive outcome for the business, its employees and subcontractors and the wider community.”