Joint administrator says Adarma faced intense competition, rising operational costs, and a continual need for investment.
Cybersecurity consultancy Adarma has reportedly entered administration, which may result in 173 employees being affected.
A number of media reports claimed directors of the Edinburgh-based company were pursuing a formal sale process in a bid to inject fresh investment into the business after the loss of a major customer resulted in financial pressure.
However it was later disclosed that employees were told during a call on Thursday that Adarma would be ceasing operations.
SC UK has contacted Adarma for a comment, but had not received a response at the time of publishing.
Margin and Cashflow Pressures
Will Wright, UK CEO at Interpath and joint administrator of Adarma Limited, said: “Adarma had built a strong reputation in the cybersecurity sector, but sustained margin and cashflow pressures ultimately proved insurmountable.
“Like many in the industry, the business faced intense competition, rising operational costs, and a continual need for investment.
“Given Adarma’s financial position, we’ve made the difficult decision to cease trading. Our team is working closely with affected employees to support them through the redundancy process, including assistance with applications to the Redundancy Payments Office.”
Written by
Dan Raywood is a B2B journalist with 25 years of experience, including covering cybersecurity for the past 17 years. He has extensively covered topics from Advanced Persistent Threats and nation-state hackers to major data breaches and regulatory changes.
He has spoken at events including 44CON, Infosecurity Europe, RANT Forum, BSides Scotland, Steelcon and the National Cyber Security Show, and served as editor of SC Media UK, Infosecurity Magazine and IT Security Guru. He was also an analyst with 451 Research and a product marketing lead at Tenable.
