Business Weekly - Cambridge, UK

Hi-tech lock-maker, Servocell's recent rocky ride has culminated in the company sliding into administration.

At the root of the company's problems are production delays for one of its lock modules, a setback first revealed in a trading update in May. Servocell’s Active Latch technology employs piezo ceramic actuators to engage and disengage a locking mechanism, activated by a very small electrical current.

Servocell's shares were trading at 50p a year ago, but opened this morning at just over 2p.
A statement from the Harlow company said: "Since the [suspension] announcement, the directors have continued to pursue possible funding alternatives.

"The directors, having regard to the company's cash flow position have reached the conclusion that it would be in the best interests of shareholders, employees and creditors of the company to appoint administrators with immediate effect."

In the short term, Servocell will be propped up by Greenbrook Industries, from which the company was originally demerged. Greenbrook is wholly controlled by Servocell director, Richard Green and his family. The financial support package will allow Servocell to continue to
trade for the "immediate future," a company statement said.