Scots space rocket Orbex company enters administration

A Scottish space rocket company which employed 163 people has entered administration.

Orbex, based in Forres, Moray, said the decision had been taken after unsuccessful fundraising efforts, and merger and takeover talks collapsed.

The firm had been developing low-carbon small and medium-sized space rockets, with initial launch operations scheduled to take place from SaxaVord Spaceport in Shetland.

FRP Advisory said that Chad Griffin, Geoff Rowley and Graham Smith had been appointed as joint administrators of Orbex on Thursday.

The joint administrators said they will now explore all options for the business, including a potential sale of its assets or technology.

FRP said it is already in active discussions with more than 20 interested parties, which include other rocket developers.

Mr Griffin, joint administrator and partner at FRP, said: “Orbex was at the forefront of the UK’s ambitions to create a sovereign space launch capability, and has made significant technological progress in recent years.

“Our focus now is on supporting employees, and engaging with potential interested parties to preserve value in the business assets and seek to retain space launch operations in Forres given the investments already made.

“We are already in contact with more than 20 potential suitors and encourage any further approaches from prospective buyers or investors to come forward.”

‘Disappointing doesn’t come close’

Previously, Phil Chambers, CEO of Orbex, said: “Disappointing doesn’t come close to describing how we feel about this moment. We have been successfully developing a sustainable, world-class sovereign space launch capability for the UK and were on the cusp of our first test flights later this year.

“It is no secret that designing and building space rockets to enable a launch service is a capital-intensive, highly advanced process with a long development cycle that creates a ‘scale-up’ funding gap. Institutional support is a crucial to bridge this gap and we have worked tirelessly to try to find both funding or rescue solutions.

“What is most disappointing is that we have brought hundreds of skilled jobs to Scotland; we have been at the vanguard of the UK’s space ambitions; we have led the way in driving good news about the UK’s space sector. Yet all of this progress now risks being undone – and it is real people who will feel the consequences.”

The spaceflight firm received a £20m funding boost from the UK Government last year to help develop Prime, a 19-metre rocket designed to transport small satellites into orbit. The rocket was due to undergo its first test launches later this year.

The government also became a shareholder in the company as part of its Series D fundraising.