AN ENGINEERING and construction firm has been sold out of administration in a deal which is expected to secure the future of the business.

EWL Building Services Ltd of Poole appointed business recovery and rescue specialist Begbies Traynor to handle its administration process.

The business, based at Bourne Valley Road, has been sold to Tamar Design and Build Ltd, also based in Poole.

Begbies Traynor said the sale out of administration had secured the jobs of seven people working for the business.

The director of the business, Mark Clements, will continue to play an integral role in the running of the new firm, Begbies said.

Gavin Savage, a director at Begbies Traynor’s Southampton office, said EWL Building Services formerly had two main offerings – mechanical and electrical engineering, and construction.

Though the mechanical and electrical engineering side of the business had fared well, the construction side had suffered from diminished profit margins, which had hit the company’s cash flow.

Mr Savage said: “As the company had been struggling, it was decided that administration and a subsequent sale was the best course of action.

“This has meant that we have enabled the director to restructure and move on quickly and efficiently in order to meet the future requirements of the business.

“It has also meant that no employees were made redundant as a result of the administration order, and we have secured the jobs of the seven staff.

“If we had not acted quickly to secure the sale, the company would have likely closed, resulting in both a loss of jobs and a worse return for creditors.”

EWL’s recent contract wins have included maintenance work for Bournemouth Borough Council housing landlord services and the re-wiring of the Applewood Hotel in Bournemouth.

EWL Building Services Ltd was incorporated in 2013.

In the financial year ended March 31 2015, it posted a turnover of £1.44m, up from £53,245 the previous year.

Its profit that year was £5,731, after a £12,221 loss in 20214.

A statement of affairs is due to be published later this week setting out the company’s debts and assets when it went into administration.