RSM advised on deal for Spark Medical and Medi 4 Ambulance Services
Spark Medical and Medi 4 Ambulance Services operate across the UK(Image: PA)
Hundreds of jobs at a cash-strapped ambulance services group have been saved after a pre-pack deal.
RSM advised on the deal to rescue the operations of Spark Medical and Medi 4 Ambulance Services, which will save more than 375 jobs and secure the services the companies provide to the NHS.
Spark Medical, based in Bromborough, Wirral, provides independent ambulance services and event medical cover across the UK. It employs 97 directly, alongside many subcontractors, and operates up to 50 medical vehicles a day.
Last August, Spark Medical bought West Sussex-based Medi 4 Ambulance Services, which offers patient transport services across the south of the UK.
RSM said: “The combined business has recently faced increased cost commitments and ongoing capital expenditure alongside a reduction in revenue, creating pressures on cash flow.”
That led to a creditors’ administration application on January 19, with Lee Lockwood and James Miller of RSM UK Restructuring Advisory serving as proposed administrators.
They identified a buyer for the two businesses and completed the pre-pack sale on February 6. The buyer has not yet been named, and BusinessLive has contacted RSM for more information.
Lee Lockwood, restructuring advisory partner at RSM said: “The pre-pack sale of Spark Medical Limited and Medi 4 Ambulance Services Limited ensures the continued operations of a large NHS supplier.
“The deal carries significant implications in terms of maintaining public health services and the resilience of local health services, as well as a substantial number of jobs. It marks a positive outcome for the business, its employees and subcontractors and the wider community.”
The most recent abridged accounts for Spark Medical, for the year to March 2024, show the company reported fixed assets of £2.2m, up from £1.9m the year before. Shareholders funds stood at £911k, down from £965k the year before.
The Companies House profile for Spark Medical, not yet updated to reflect the pre-pack deal, shows a Trafford Park company called “Forbidden Festival Europe Master Ltd” had “significant control” over Spark Medical.