MORE than 100 jobs are at risk after it was announced a Weymouth-based engineering company has gone into administration.

FGP Precision Engineering Ltd (FGP), which is based on the Granby Industrial Estate and employs approximately 130 staff, has ‘encountered problems’ with short term cash flow pressures and working capital constraints, a statement said.

Efforts by company directors to find short term funding - or sell the business to stabilise the company - have both proved unsuccessful.

There have been no redundancies as of yet, but efforts are now being made to ‘preserve jobs and secure a sale’.

A statement issued said: “Yesterday, Richard Hawes and Matt Cowlishaw of business advisory firm Deloitte were appointed as administrators to FGP, an aerospace components machinist.

“The administrators intend to continue to trade the business while seeking a buyer for all or parts of the business as a going concern.”

FGP was originally founded in 1970 as a precision grinding company called Fine-grind Products.

Richard Hawes, Deloitte partner, said: “We are working closely with customers and employees to ensure the business has the best possible platform to secure a sale, preserve jobs and generate as much value as possible for all creditors.”

The news comes after Universal Engineering, also based on the Granby Industrial Estate, went into administration last month.

More than 40 staff lost their jobs, together with 44 workers who were let go the month before and 28 workers who were made redundant at the end of last year.

Mickey Jones of property landlord DJ Property, which owns a lot of property on the Granby Industrial Estate, said: “I’m very surprised to hear the news regarding FGP; I understood them to have good customers, a good order book and a good team of people.

“Without a doubt if the business closes and disappears this is very bad news; FGP is another large employer in the local market.

“Recently Universal Engineering closed its doors and although both Universal and FGP focus on engineering, they have different markets.

“I would be surprised if the company was not acquired by a personal business out of administration, as it has too many projects and employees to disappear.

“Perhaps the business needs to take a step back in order to take a step forward. It’s very early days, but it’s not nice news for the employees and their families.”

Any FGP customers with queries about goods should visit fgpltd.com or Deloitte on deloitte.com/uk/fgp

One worker said: "It's bad news for engineering in the UK and business in Weymouth; there are a lot of people who put their heart and soul in to the company.

"Hopefully a deal can be found."

Michelle Hind, president of the Weymouth and Portland Chamber of Commerce, said: “It’s always bad for the economy when a business goes into administration.

“This will affect the local economy and it’s sad that people may lose their jobs.

“It’s a case of looking into sustainability for businesses in the area, but maybe there will be a positive outcome from the administration process.”