The £77m turnover firm had more than 2,000 maintenance workers and engineers on its books, placed primarily with Network Rail, rail renewal contractors and London Underground.

Widespread disruption across the rail industry has been avoided after administrators Deloitte quickly sold the trade and assets of Vital late yesterday to rival workforce supplier Morson Group.

This deal will see all 208 staff switch to Morson Group and labour contracts passed on across the rail and M&E sectors.

Dan Smith, partner in Deloitte’s Reorganisation Services practice, said: “The group has suffered recently from cash flow pressures.

“The sale of the trade and assets of these companies minimises disruption in the continued delivery of these essential services to the rail industry and secures jobs.”

Deloitte’s appointment covers seven group companies: Vital Services Group , Vital Rail, Ematics, Vital Resources, Quality Recruitment, Vital Consulting UK and Vital Power (UK).

Three other companies in the group: Vital Skills Training, Sicura Systems and Vital Technology are unaffected by the administration.

Morson Group is a technical recruiter and engineering design and project management company covering several engineering markets including rail, aerospace, energy, infrastructure and oil & gas.

The £600m turnover group has over 40 offices worldwide and is also headquartered in Manchester.

Ged Mason, CEO of Morson Group, said: “We are delighted that Vital Human Resources Limited will join the Morson Group and that we have safeguarded thousands of jobs.

“Vital have an extremely strong brand within the rail, power and infrastructure markets, particularly in skilled blue collar disciplines, and as such Morson and Vital are extremely well placed for future growth.

“A large percentage of Vital’s staff have been with the company for many years and will provide experience and knowledge in their roles.

“We look forward to developing our market share and offering to our clients and contractors extended services and coverage as part of the enhanced Morson Group.”