A north-east oil service company has gone into receivership, resulting in 17 staff members being laid off.
Rising costs and unsustainable cash flow problems drove Aberdeen Fluid System Technologies (AFST) to the wall, according to receivers at FRP Advisory.
The business has ceased trading with immediate effect.
AFST was incorporated in 1999 and had its base at ABZ Business Park near Aberdeen International Airport.
It specialised in the supply of small bore tubing systems, technology and services to the oil and gas industry.
Turnover was around £1million, and the company had built a blue-chip client base in the oil and gas industry before its collapse.
Receivers will now try to sell the company’s assets, including property, products and equipment.
Iain Fraser, joint receiver and partner with FRP Advisory, said: “Despite the best efforts of the directors, who explored every option to secure a future for the company, it was clear that severe cash flow problems could not be overcome, and the directors decided to appoint FRP Advisory as receivers.
“We will now focus on selling the assets of the business and will work closely with all agencies, including the Redundancy Payments Office, to ensure the employees receive as much support as possible.”
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