A historic manufacturing firm which counts Jaguar Land Rover and Bentley among its clients is set to go into administration, costing around 100 jobs.
Worcester-based Froude Hofmann designs, manufactures and supplies a range of engine testing systems in the automotive, gas turbine, marine and industrial markets.
The company said in a statement it had "experienced a period of significant losses" which had been coupled with a weak order book.
As a result, it has filed a notice of intention to appoint administrators from Birmingham-based financial services firm Poppleton & Appleby to assess the options for the company over the coming days.
The statement added: "The majority of staff have been laid off while we decide on the most appropriate course of action which could include, among other options, the continuation of ongoing operations and a possible sale of the underlying business and assets."
William Froude invented the water brake dynamometer in 1877 at the request of the British Admiralty to produce a machine capable of absorbing and measuring the power of large naval engines.
The company, originally called Heenan & Froude, transferred to Worcester in 1903 and now employs approximately 100 members of staff.