Hundreds of Ambulance Jobs Secured in Pre-Pack Rescue Deal
More than 375 jobs have been safeguarded at two major ambulance service providers following a pre-pack administration deal that ensures the continuity of critical NHS support services across the United Kingdom. The operations of Spark Medical and Medi 4 Ambulance Services have been rescued through this strategic transaction, which was advised by restructuring specialists RSM.
Details of the Business Rescue Operation
Spark Medical, headquartered in Bromborough on the Wirral, delivers independent ambulance services and event medical coverage nationwide, employing 97 staff directly alongside numerous subcontractors and managing up to 50 medical vehicles daily. In August of last year, the company expanded by acquiring West Sussex-based Medi 4 Ambulance Services, which specializes in patient transport across southern UK regions.
However, the combined entity recently encountered severe financial challenges. RSM explained that the business faced increased cost commitments and ongoing capital expenditure, coupled with a reduction in revenue, leading to significant cash flow pressures. This situation prompted a creditors' administration application on January 19, with Lee Lockwood and James Miller of RSM UK Restructuring Advisory appointed as proposed administrators.
Successful Pre-Pack Sale Completion
The administrators swiftly identified a buyer for both companies, culminating in a pre-pack sale finalized on February 6. While the identity of the purchaser remains undisclosed at this time, the deal has been hailed as a positive outcome for all stakeholders involved.
Lee Lockwood, restructuring advisory partner at RSM, emphasized the broader implications: "The pre-pack sale of Spark Medical Limited and Medi 4 Ambulance Services Limited ensures the continued operations of a large NHS supplier. This transaction carries significant importance for maintaining public health services and bolstering the resilience of local healthcare provisions, while also preserving a substantial number of jobs. It represents a favorable resolution for the business, its employees, subcontractors, and the wider community."
Financial Context and Corporate Background
Recent financial records for Spark Medical reveal that for the year ending March 2024, the company reported fixed assets valued at £2.2 million, an increase from £1.9 million the previous year. Shareholders' funds stood at £911,000, showing a slight decrease from £965,000 in the prior period.
According to Companies House documentation, which has not yet been updated to reflect this pre-pack arrangement, Spark Medical was previously under the significant control of Forbidden Festival Europe Master Ltd, a company based in Trafford Park. This corporate connection underscores the complex ownership structures often involved in such business rescues.
The successful completion of this deal not only secures hundreds of jobs but also guarantees the uninterrupted provision of essential ambulance and patient transport services to the NHS, highlighting the critical role of restructuring mechanisms in preserving vital healthcare infrastructure during financial distress.
