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Fri September 24 2021

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Rescue for rail labour supplier

5 Nov 13 Technical recruitment firm Morson Group has acquired certain businesses and assets of Vital Services Group out of administration as part of a pre-pack deal.

Vital supplies labour to railway and power construction projects. It directly employs 208 people in Manchester but through its supplier relationships it contracts about 2,000 more, mainly in the rail sector. It is the largest supplier of labour to Network Rail.

It had suffered recently from cash flow pressures and administrators from Deloitte had been appointed.

The deal involves Vital Services Group, Vital Rail, Ematics, Vital Resources, Quality Recruitment, Vital Consulting UK and Vital Power (UK).

Three other companies in the group – Vital Skills Training, Sicura Systems and Vital Technology – are not affected.

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Morson Group CEO Ged Mason, said: “Vital have an extremely strong brand within the rail, power and infrastructure markets, particularly in skilled blue collar disciplines, and as such Morson and Vital are extremely well placed for future growth.

“A large percentage of Vital’s staff have been with the company for many years and will provide experience and knowledge in their roles. We look forward to developing our market share and offering to our clients and contractors extended services and coverage as part of the enhanced Morson Group. Vitals’ initiatives to invest in creating the skills of tomorrow are critical for the success of the many infrastructure projects within the country.”

Vital Services founder and CEO John Smith added: “We are very pleased with the transaction which we are certain will benefit our customers and contractors alike.”

Joint administrator Dan Smith said: “The Group has suffered recently from cash flow pressures. The sale of the trade and assets of these companies minimises disruption in the continued delivery of these essential services to the rail industry and secures jobs.”

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