The Forres-based orbital launch services company and space rocket manufacturer, Orbex, is in the process of appointing administrators after fundraising, merger and acquisition opportunities all concluded unsuccessfully.
Orbex has filed a notice of intention to appointment Administrators and will continue trading while all options for the future of the company are explored, including potential sale of all or parts of its business or assets. The notice provides short-term protection and allows the business time to secure as positive an outcome as possible for its creditors, employees and wider stakeholders.
The funding required for Orbex to remain a viable business was sought from a variety of public and private investors during its Series D funding round, which has ultimately failed. Several merger and acquisition opportunities have also been explored, with none resulting in a favourable outcome.
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.
Capital-intensive
“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 first test launches of Orbex’s microlauncher Prime were due to take place later this year. Orbex already has commercial launch commitments from several satellite customers for Prime, which is one of the most advanced, low-carbon microlaunchers in the world.
Responding to the news Forres-based Orbex is entering administration, Moray West, Nairn and Strathspey MP, Graham Leadbitter said: “The responsibility for this lies squarely with the UK government who have allowed a company that employs world-leading expertise to fall into administration after they pulled vital funding that would’ve secured the company’s future.
“My immediate concerns are with the 160 employees at Orbex whose jobs are at risk, and it’s vital that all public organisations step in to support the workers through what will be a difficult time.
Job losses
“I’ll work with governments of all spheres to not only maintain employment in the area, but ensure we can keep high skill jobs in this community.
“But all of this was avoidable – the UK government has long talked up the need to develop sovereign launch capabilities but has yet to match their rhetoric with action. In fact in this case they’ve directly contradicted their own words by sabotaging the future of Orbex.
“I’ll be making urgent representations to the UK government to find out exactly why they pulled critical funding, and demand they step in to support the company and it’s workers at this time.”
Moray MSP Richard Lochhead added: “The news of Orbex entering administration and the potential loss of so many jobs in Moray is a huge blow for the highly skilled workforce and the local economy.
“Orbex had huge potential to be one of the companies set to play a key role in the European Space Agency’s launch programme, but to get to that stage these deep tech companies require public support.
“The UK Government – which holds the key purse strings – must invest in and support companies like Orbex if it wants to achieve satellite sovereignty.
“As Moray’s MSP I am now seeking meetings with the administration, HIE, and Scottish Government Ministers to see if a way forward can be found.”