Tue, 12 May 2020 | ADMINISTRATION
Scottish construction business Neil McGougan Limited has gone into administration after suffering severe cashflow disruption due to the coronavirus lockdown. The family-owned contractor, founded in 1986, is the largest construction business in the town of Oban.
With a wide client base throughout the surrounding Argyll and Bute and West Highlands areas, the company provides a range of construction services. Joint administrator Derek Forsyth described the firm as “long-established and highly respected”.
It had recently been appointed to West Highland Housing Association’s £3.5 million major repairs and investment programme. However, in line with coronavirus restrictions on construction activity at non-essential sites, the company’s projects have been shut for over five weeks.
This closure impacted the company’s cash flow and it ceased trading last week. 20 staff have been made redundant, with Derek Forsyth and Blair Milne from Campbell Dallas appointed as joint-administrators.
Forsyth said: “The directors did everything possible to keep the business trading. However, the scale of cashflow problems and the impact of the lockdown left them with no alternative other than to place the business in administration.”
“We will now focus on winding up the business and providing as much help as possible for the employees.”
The administrators will seek buyers for the company assets, including plant, vehicles and equipment, with interested parties asked to make contact as soon as possible. In its most recent accounts, made up to the year ending December 31 2018, the company registered net current assets of £287,800.
Neil McGougan’s administration follows that of Glasgow-based Central Building Contractors at the end of April, as coronavirus exacerbated difficult trading conditions in Scotland’s construction industry.
First Minister Nicola Sturgeon has confirmed that non-essential construction work in Scotland will remain banned, despite Prime Minister Boris Johnson allowing construction in England to resume.
View the latest distressed UK businesses here.
Established respected business, holding valuable private and public sector client base, there being a number of key clients, some paying a retainer and from which regular repeat business is received ensuring a substantial pipeline figure.
A specialist manufacturing business of quartz and granite kitchen and bathroom worktops. It has been established in conjunction with retail premises (retail premises are also available if required). It offers a supply and fit service and is located i...
Niche window& door installer, based Devon, operating throughout the South West and further afield, includes affluent South Coast, desirable towns and villages. Operating in the quality timber sector which accounts for the majority of trade, different...
26
|
Apr
|
Kent-based scientific consultancy sold to US firm | BUSINESS SALE
A4P Consulting Limited, a scientific consultancy company hea...
25
|
Apr
|
Ambulance services provider acquired in pre-pack deal | BUSINESS SALE
Elite Emergency Medical Services Ltd (Elite EMS), an ambulan...
25
|
Apr
|
Tile business old to management team by Norcros | MBO/MBI
Johnson Tiles UK, a tile business based in Stoke-on-Trent, h...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.