A Carlisle accountancy firm has been appointed to oversee the administration of a company involved in the manufacture of specialist vehicles.

Penman Engineering Limited - which provides engineering, fabrication, integration and design services which are used in the manufacture of special armoured and protected vehicles, containerised systems, protective equipment and commercial vehicles - entered administration today.

City-based Armstrong Watson, which also has offices in Penrith, Wigton, Workington, Kendal and Lockerbie, has been appointed administrators.

The administration process is being handled by Mark Ranson, Michael Kienlen and Daryl Warwick, all partners with Armstrong Watson’s restructuring, recovery and insolvency team.

Penman has a history stretching back to 1859 and currently employs about 140 from its site in Heathhall near Dumfries.

Mr Ranson said: "We are currently focussed on enabling the business to continue to trade during the administration process, in order that we can seek a sale of the business in order to preserve the maximum number of jobs.

"We have already identified a considerable number of prospective purchasers and will be speaking to them over the next few days to determine their interest.

"We understand that many employees will be concerned about their future employment, and will be providing confidential briefings to them as regularly as we are able to during the administration process.

"All employees will receive relevant information about their employment rights in the current difficult circumstances, and may speak with one of our employment rights specialists if necessary.

"The directors of Penman had strived to avoid the necessity of the company going into administration, but the delay in arrival of a major contract provided too big a challenge to the businesses cashflow.

"All directors are currently retained to assist the administrators in the running of the business."