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Mustang deal saves 30 jobs

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mustang

TROUBLED Mustang Marine has been bought out of administration by a consortium of investors, securing thirty jobs it was announced yesterday. 

The value of the deal has not been disclosed. A consortium of nine individuals led by Stewart Graves has bought the company, which is based at Pembroke Dock. Mr Graves is the interim managing director put in place to run the company late last year by the Milford Haven Port Authority. A new construction hall at Mustang Marine?s base in Pembroke Dock was only opened by Welsh Economy Minister Edwina Hart in November 2013. In February, Mr Graves denied there were any plans to call in administrators when reports suggested the firm was in financial difficulty, describing the firm as being ‘tight for cash’. Later the same month the Herald was able to report that local businesses had been left owed hundreds of thousands of pounds. Mustang has had millions of pounds in funding from the Milford Haven Port Authority and a cash injection from the Welsh government. After calling in the administrators, Mr Graves revealed that the company had a significant cash shortage in December 2013 which left it facing closure. He said with assistance from a new management team and external advisers a long-term funding package was secured in February from the Welsh government and Milford Haven Port Authority and an external third party. However, after completing its review of the business, the external party withdrew its offer, and ?without that party the long-term funding package could not proceed?. The Pembroke Dock-based boat building and ship repair company officially entered administration at the beginning of March with the loss of 66 jobs. Questions were raised to Welsh Government in Cardiff regarding the Port Authority’s responsibilities to local firms and in March, Alec Don, Chief Executive of the Port Authority told The Herald: “The Port of Milford Haven is a 50% shareholder and remains a separate corporate entity to Mustang Marine. The Port is not liable for Mustang’s debts. Any specific questions about that business, including queries about creditors, must be directed to the administrators Grant Thornton.” “As a Trust Port we continually look to invest in growth and economic activity in the Port. On this basis, and in good faith, the Port of Milford Haven invested in Mustang Marine. The company approached us with a firm business plan and orders that required our support and investment to achieve.” However, in an interview at the time of Mustang Marine’s collapse, local MP Simon Hart said: “The fact that Pembrokeshire companies are owed hundreds of thousands of pounds seems to have been glossed over. The Port Authority cannot talk about growth and activity on the one hand and then refuse to even consider the plight of local people left out of pocket on the other. These people undertook work for Mustang as they felt comfortable that the company was part of a larger trading operation of which the Port was a central part.” It has now emerged that HSBC Bank and former Mustang Director Huw Lewis will be receive around £270,000 and £296,000 as secured creditors of the firm, while former employees can expect a share of around £105,000 as preferential creditors. Those figures leave under £950,000 to be distributed to creditors owed more than £3.1m. According to its most recent set of publicly available accounts, the company had a £6m turnover in the year ending 31 August 2012. But turnover subsequently jumped to £9m following Mustang Marine’s £500,000 acquisition of Milford Haven Ship Repair from the MHPA. But the company also saw pretax profits of £847,817 in 2010/11 turn into pre-tax losses of £516,618 in 2011/12. Management accounts for the year to 31 August 2013 show the business then racked up further losses of £602,340, which were recently revised to losses of £1.1m. In a newly published statement of administrator’s proposals, dated 22 April 2014, Grant Thornton examined the dramatic turnaround. It reported that the directors attributed the losses to the company’s failure to hit predicted margins on new-build projects such as Supacat 1, disruption and delays on other contracts caused by delays on Supacat 1, ?375,000 spent on refurbishing its Pembroke Dock office, and a lack of robust business procedures. Grant Thornton were appointed administrators to the boat manufacturer in March this year. Alistair Wardell and Nigel Morris of the business advisory firm’s Cardiff office have now confirmed a sale of the boat-building and marine services arms. Immediately after entering administration, Mustang Marine made 66 staff redundant, with 48 kept on to continue work on a number of projects. The future of 30 of these employees has been secured by the sale, while a further deal for the dry dock part of the business that administrators expect to complete later this week looks set to save another ten jobs. The existing projects that the 30 staff will work on include building a Tidal Energy Turbine that will be installed in Ramsey Sound later this year. Lead administrator and head of Grant Thornton in Wales Mr Wardell, said: “We are delighted to have been able to conclude a deal for the boat building and marine services parts of the Mustang business. This is very good news for the 30 skilled employees who ave remained working for the company through the administration process. Their jobs are now secure, and the new owners are confident that the business will now grow with the aim of taking on further employees in the near future.” Administrators have said that the workers will be retained to work on projects including a tidal energy turbine. Grant Thornton said talks with ‘an interested buyer’ for the facility are continuing.

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Crime

Pembroke Dock woman in court for failing to remove rubbish from property

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A PEMBROKE DOCK resident is due to appear before Haverfordwest Magistrates’ Court later today (Nov 25) for multiple alleged breaches of a community protection notice.

Sheena Deacon, of 13 Wavell Crescent, Pembroke Dock, faces charges under the Anti-social Behaviour, Crime and Policing Act 2014, which carries a maximum penalty of a Level 4 fine.

The charges stem from allegations that Deacon failed to remove accumulated household waste from her property on several occasions. According to court documents, the breaches occurred on September 19, September 26, October 2, October 9, and October 17 this year.

The charges indicate that Deacon, despite being issued with a community protection notice, did not comply with the requirements to clear and appropriately dispose of refuse and household waste from her address.

The Herald will bring updates on the case as it progresses.

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News

Welsh Conservatives urge Labour to scrap ‘family farm tax’

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THE WELSH CONSERVATIVES have announced plans to bring forward a Senedd debate next week (Nov 27) calling on the UK Labour Government to abandon its proposed “family farm tax.”

The tax, introduced by the UK Labour Government, is being criticised as a move that will harm Welsh farming, threaten food security, and increase food prices. Alongside the Welsh Government’s Sustainable Farming Scheme and perceived “anti-farming agenda,” critics argue this new tax amounts to a coordinated effort to undermine the future of agriculture in Wales.

Shadow Minister warns of consequences
Ahead of the debate, Welsh Conservative Shadow Minister for Rural Affairs, James Evans MS, condemned the proposal, stating:
“Labour’s family farm tax will put family farms out of business, threaten our food security, and lead to food prices rising. Only the Welsh Conservatives will stand up for our farmers, and that’s why we’re bringing forward a Senedd motion calling on Labour to reverse this decision. No farmers, no food.”

NFU Cymru expresses alarm
NFU Cymru President, Aled Jones, echoed these concerns, highlighting the widespread opposition from the farming community. Speaking about the impact of the tax on Agricultural Property Relief and Business Property Relief, Jones said:
“Earlier this week, hundreds of farmers from across Wales journeyed to London to meet with their MPs and register their deeply held concerns about these misguided and ill-thought-out reforms.

“The proposals unveiled by the Treasury last month to introduce a tax on the passing on of our family farms to the next generation are a massive added burden. They will leave many farmers without the means, confidence, or incentive to invest in the future of their business.

“NFU Cymru reiterates its call for the UK Government to halt these changes.”

The motion to be debated
The motion, set to be debated in the Senedd, reads:
“To propose that the Senedd:
Calls on the UK Labour Government to reverse its decision to impose a family farm tax on agricultural businesses.”

This debate is expected to attract significant attention, with Welsh farmers and rural communities keenly watching for the outcome.

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Community

Internet outage for two villages after exchange box destroyed

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RESIDENTS of Clunderwen and Llandissilio have been left without internet access following the destruction of an Openreach exchange box just outside Llandissilio village.

The incident occurred yesterday (Nov 23) when the box was reportedly demolished by a vehicle. The damage has resulted in a complete loss of internet services for the two villages, with repairs expected to take at least a couple of days.

Local residents have expressed frustration over the disruption, as the outage affects home businesses, remote workers, and households relying on internet connectivity for day-to-day tasks.

Openreach engineers have cordoned off the site, and work is ongoing to assess the extent of the damage. A spokesperson for Openreach has been contacted for comment but had not responded by the time of publication.

The vehicle involved in the incident has not yet been identified. Anyone with information about the collision is urged to contact the local police.

With repair timelines unclear, affected residents have called for increased communication from service providers to manage expectations during the outage.

“Bringing the community back online is a priority,” a local resident said. “We’re hoping Openreach can resolve the issue quickly and ensure it doesn’t happen again in future.”

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