The company has been handed back to director Peter Reid and Royairs managment after reaching company voluntary arrangement (CVA) with its creditors.

Ian Walker, at the administrators Begbies Traynor commented: 'The administration gave management the breathing space to embark on a major re-structuring programme while enabling business to continue, and leading eventually to a position where in our view a sound and viable business could be handed back. It really is a win-win outcome, since creditors will be paid under this arrangement, jobs have been saved, and the company is in good shape to continue fulfilling a healthy order book.'

After some early redundancies, management and administrators have succeeded in saving more than 25 jobs.

Established in 1967, Royair is a leading producer of grilles, louvres and diffusers. Its move into administration was blamed on cheap imports, low profit margins and cash-flow problems.