UK aircraft manufacturer Britten-Norman has gained new owners alongside fresh investment in the business, analysis of company records reveals.
On 14 October, the Bembridge, Isle of Wight-based airframer revealed it had secured what was a described as a “significant new investment” from Northern Irish business Beechlands Enterprises.
Neither party disclosed how much money was being injected into the firm, although Britten-Norman said it would allow the company to scale up its manufacturing operations for the BN-2 Islander in the UK.
But documents now filed at the UK’s Companies House registry show that in addition to funding the business, Beechlands has also supplanted previous owner 4D Capital Partners, a private equity firm.
Alison Rankin Frost, a director of Beechlands, has also been appointed as a director of Britten-Norman, replacing 4D Capital’s Alex Silk, who resigned on 11 October.
“The board, which Alex Silk joined, sought additional longer-term investment which has now been made available by Beechlands Enterprises,” says Britten-Norman.
“4D Capital released its shareholding in Britten-Norman Aerospace as part of the new investment.”
As part of the funding injection, Patrick Cowan – a former chief engineer at Short Brothers – also joins long-term Britten-Norman director William Hynett on the company’s board.
4D Capital became involved with Britten-Norman after rescuing the business from administration via a pre-pack purchase in March, using a special purpose vehicle called Shelton Bidco.
Shelton Bidco purchased the trade and assets of the collapsed B-N Group Ltd companies from administrators Interpath Advisory through first acquiring Britten-Norman Aerospace, which continued to trade throughout the process and took on the mantle of its former parent.
In total, 4D Capital paid a consideration of £1.1 million ($1.4 million) for the group businesses, £450,000 of which was deferred until 30 September.
At the time, Silk said 4D Partners saw the “latent value in Britten-Norman”, which had been “underperforming since the pandemic”.
In addition to fresh working capital, the team from 4D Capital was to “work closely with management to help the company ramp up production”.
Funding for the business came from GQS Finance through loans and credit facilities, with Britten-Norman pledging company-owned aircraft and its trade and assets as security.
Britten-Norman says Beechlands’ initial investment was “used to buy all the outstanding debt”.
“As the company was controlled by its secured lenders this was necessary,”; Britten-Norman is “now debt free”, it says.
The GQS charges were declared as satisfied on 4 November, having been replaced by similar charges where Beechlands holds the security, company documents show.
“The directors of Beechlands envisage that further investment will be in the form of equity. The new business plan envisages that after a period of substantial investment Britten-Norman will return to sustainable profitability in FY2025/26,” the airframer adds.
Additionally, the latest administrators’ progress report for B-N Group, covering the period to 20 September but filed on 16 October, reveals that 4D Capital was late paying the remaining £450,000 owed for the business.
Although B-N Group’s administrators stated that they were “exploring their options” with regard to recovery of the outstanding sum, FlightGlobal understands that a “full and final settlement” was agreed with 4D Capital on 11 October – the same date it exited the business.
Britten-Norman adds: “As part of the new investment, all legacy matters, including the deferred consideration to Interpath, have been resolved.”
Meanwhile, the airframer has disclosed an order for a single turbine-powered Islander from Xen Aviation & Services, a start-up domestic operator based in Georgetown, Guyana.
