Mon, 15 Nov 2021 | ADMINISTRATION
Mechanical and electrical design specialist Weir & McQuiston (Scotland) has fallen into administration, with the company’s assets now set to go up for sale. The family-owned business, which was founded in 1976 and traded as WMQ Building Services, collapsed as a result of cash flow problems related to pressures currently impacting the UK construction sector.
The business had experienced rapid growth in recent years, powered by diversification into new sectors, such as renewables. It worked on a wide array of projects, including hotels, retail, offices, churches, local authorities and hotels, among others.
Despite such strong growth, the company reported a £2.06 million net loss on turnover of £12.5 million for the year ending May 31 2020, citing difficult trading conditions amid the COVID-19 pandemic. These issues were then exacerbated by the wider problems impacting the construction sector, including materials and labour shortages.
Blair Milne and James Fennessey of Azets were appointed as joint administrators for the company. The administrators said: "The administration was caused by unsustainable cash flow problems stemming from wafer thin margins in the construction sector, the cessation of construction activity and the widely reported problems with labour and materials shortages."
The joint administrators will now bring the business' assets to market, including plant and equipment and work in progress. In its most recent accounts, the company reported total assets of £3.7 million, with creditors owed £3.4 million.
Joint administrator Blair Milne, Head of Restructuring at Azets, said: “Weir & McQuiston was one of Scotland’s leading mechanical and electrical contracting firms with a quality client base and an excellent reputation across the construction industry.”
“The directors did everything possible to keep the business trading, however the scale of cash flow problems and the impact of the lockdown left them with no alternative other than to cease trading and place the company into administration.”
“We will now focus on realising as much value from the assets as possible for the creditors and would ask interested parties to contact our Glasgow office as soon as possible.”
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