Kehoe Rail Services called in the administrators earlier this year after a long trading history providing rail services to a host of key infrastructure clients, including Network Rail, London Underground and mainstream construction workers.

Paul Kehoe, owner of Kehoe Rail Services was already in advanced discussions with Shorterm Group – a leading specialist recruiter and supplier of technical staff, professional engineers, skilled trades staff, and commercial and industrial workers – regarding a merger, when the funding position of Kehoe altered dramatically.

Operating under tight time frames, the Shorterm Group was able to obtain the licence, securing the future of the contract workforce now operating their payroll.

To provide security not just to Kehoe’s clients but also the back office staff, Shorterm is now employing all back office and support staff.

This has been a seamless transfer and has not resulted in a single failure for any of Kehoe’s staff, clients or contractors.

Paul Kehoe said: “Having already selected Shorterm Group as our partner in 2012, I am able to be confident that this arrangement is the right one for our business, our clients are protected, our contractors are being paid and our staff are not facing redundancy.

“I look forward to a long future with the Shorterm Group.”

Steve Gallucci, chief executive of Shorterm Group, said: “Operating this business complements our existing rail offerings ensuring our clients a full service, even in highly-specialist sectors. It complements our business model and we are delighted to have Paul and his team on board already.”