The Rical Group, a Smethwick-based manufacturing business with nearly 200 years of history, has entered administration, placing 185 jobs at risk.
The company operates across several industries, including jewellery, automotive, defence, construction, and catering, with its subsidiaries Priory Products and H.A. Light Findings serving as key suppliers to the jewellery sector. Evelyn Partners has been appointed as administrators for the group.
A Legacy in Manufacturing
Founded in 1824 by William Mitchell, the Rical Group began as a presswork company producing metal pen nibs. Over time, it expanded its operations to provide fine blanking, metal pressings, and component fabrication for a range of industries.
Its subsidiaries include Priory Products and H.A. Light Findings, which supply findings and components essential to jewellery manufacturing. Fellows, established in Wolverhampton in 1895, and Taurus Engineering, incorporated into the group in 1997, reflect Rical’s broader manufacturing expertise.
These specialised operations have made Rical Group a valued supplier for industries requiring precision manufacturing, including the jewellery sector.
Financial Difficulties
The administration follows a period of financial challenges for the Rical Group. In its most recent accounts for the year ending 31 August 2023, the group reported a pre-tax loss of £932,000, up from £845,000 the previous year. Turnover decreased to £16.3 million, compared to £17.5 million in 2022.
The company attributed part of its financial strain to defined benefit pension scheme costs, which accounted for £506,000 during the period. Despite these losses, Rical reported improvements in performance after August 2023, reflecting efforts to address its financial difficulties.
Impact on the Jewellery Sector
The inclusion of Priory Products and H.A. Light Findings in the administration process has implications for jewellers who rely on these businesses for findings and components. These subsidiaries play a key role in supporting jewellery production, and their future operations are of significant interest to the sector.
The administrators have not yet provided details on potential restructuring or the possibility of selling parts of the business. However, the specialised nature of Priory Products and H.A. Light Findings may make them attractive to investors, creating the possibility for continuity in their operations.
Looking Ahead
The Rical Group’s financial troubles highlight the broader pressures facing many manufacturing businesses today. Its long history and the specialised expertise of its subsidiaries may present opportunities for recovery or reinvestment, either through restructuring or a sale to new owners.
As the administration progresses, the future of these businesses will be closely monitored by the jewellery sector, particularly those who depend on them for supply. For affected employees, the outcome of the process will also play a crucial role in determining the group’s next chapter.
