KPMG takes over as 20 jobs go at Sabre Safety

KPMG has been appointed at Fife-based oil and gas safety services company Sabre Safety after the firm was placed into administration.

Turnover at the firm collapsed by more than half in the two and a half years after the collapse of global oil prices and the news means 20 more jobs in the battered North Sea energy indusrty.

Its remaining 15 staff, mostly based in Cupar, Fife, are helping administrators safeguard assets while the possible sale of the business is considered.

As well as facilities in its home town of Cupar, and Dyce in Aberdeen, the firm has overseas operations in Nova Scotia, Norway, Italy, Malaysia and the US.

A statement from KPMG said: “Sabre Safety has been adversely affected by the downturn in the oil and gas sector to the extent that its turnover reduced from around £13million in 2014 to £5.5 million in 2016.

“The company was unable to reduce overheads in line with declining sales levels and also suffered contractual problems in its Italian division.

“These factors led to significant losses being incurred during 2016.”

The company, which designs and installs breathing air equipment and also supplies gas detection systems and training, was established in 2001 by chief executive Doug Smith and former directors Jenny and Allan Cameron.

The management team had tried but failed to secure either a buyer or fresh investment to save the firm.

Joint administrator Blair Nimmo said it was “highly regrettable” that so many redundancies were required. He added: “Unforto losses, KPMG tunately the company has suffered a significant drop in sales due to the reduced levels of activity in the oil and gas sector.

“The company director explored a range of options secure the future of the business and while we believe there have been expressions of interest recently, a deal could not be finalised.

“We hope that the key assets and infrastructure of Sabre Safety will be attractive to other operators in the sector. With that in mind, we are welcoming early notices of interest.”