Johnston Carmichael appointed as North East construction firm is placed in provisional liquidation

Johnston Carmichael has been appointed provisional administrators of Anderson Construction (Aberdeen) with the firm stating that ongoing trading was “unsustainable”.

The company, which operated from premises in Northfield, Aberdeen, was involved in the construction of commercial properties for private and public sector organisations, including local authorities.

The Provisional Liquidator has made all of the company’s 19 employees redundant.

The statement issued by the firm added: “The company experienced a substantial drop in turnover for the first half of 2018.

“This, along with ongoing uncertainty in the business community, recruitment issues for key management posts and challenging procurement practices lead the company, who have been trading for almost 25 years, to conclude that closing the business is the most appropriate course of action.

“Despite winning a substantial tranche of work in early 2018, contracts did not get the go-ahead until June 2018 – leading to a protracted period of short-time working for the company’s staff. The directors endeavoured to secure early start dates for the work.”

It is the second north-east construction business to go under in the space of a few days after Huntly-based housebuilder Deveron Homes and sister company Deveron Construction folded last week amid project delays and challenges in the local housing market.

Gordon Maclure, restructuring partner at Johnston Carmichael, has been appointed provisional liquidator to the firm, which traded for nearly 25 years and employed 35 staff at its peak.

Mr Maclure said: “In common with many building contractors in the north east of Scotland in recent years, the business has suffered from reduced margins and cashflow difficulties. In addition, managing director Kenny Anderson was recently diagnosed with cancer, and we offer him our best wishes for a successful outcome as he begins long-term treatment.

“With these factors considered, the directors concluded that it was not sustainable for the company to continue trading and regretfully took the decision that the company should be wound up. Our immediate focus is on the employees of the company, and we will liaise with government agencies, including PACE, to ensure these employees receive all possible support at this difficult time.”

The most recent accounts for Anderson Construction show it had net assets of £228,459 at January 31, 2017.