Tue, 11 Jan 2022 | ADMINISTRATION
South Lanarkshire-based construction firm Iain Potter Construction (IPC) has entered liquidation after falling into a “severely constrained cash flow position”. The company’s cash flow was impacted by rising costs for labour and raw materials, as well as increasing overheads and contractual difficulties.
The company’s sole director had undertaken efforts to improve IPC's position, however, sufficient funds could not be secured and costs could not be sufficiently reduced. As a result, the director placed the business into administration on January 7, with joint liquidators Blair Nimmo and Alistair McAlinden on Interpath Advisory saying the absence of funding meant they had no option but to cease trading upon their appointment.
Interpath CEO Blair Nimmo said that the collapse of the company was indicative of broader issues facing the Scottish construction sector and warned that further liquidations were likely. “The collapse of IPC is another worrying sign of the challenges presently facing the Scottish construction sector and, particularly, subcontractors,” Mr Nimmo said.
He added: “IPC was a well-known contractor and its insolvency will, unfortunately, not be the last we will see in the early months of 2022.”
Incorporated in 2014 in Carluke, IPC offered a range of construction solutions and served clients from the education, housing, health and public sectors, as well as private clients in the commercial and industrial markets. In its most recent accounts, to the year ending June 30 2021, the company reported fixed assets worth £517,154 and current assets valued at £1.8 million. The company’s total equity at the time was £290,756.
Commenting on the liquidation process, Interpath Advisory Scotland Managing Director Alistair McAlinden said: “Our immediate priority will be to assist employees with their claims to the Redundancy Payments Office, as well as safeguarding the company’s assets and liaising with IPC’s customers.”
View the latest distressed UK businesses here.
Introducing a successful British contracting firm that has seen remarkable growth under their visionary leadership. As a respected player in the industry, they specialise in hassle-free renovation projects that are in high demand among both residenti...
A well-established family business that has been in operation for over 40 years, covering London and the Home Counties. Founded in 1979 by the current owner’s late father, the business has a rich history of success. Since 1983, it has expanded its se...
The company is a highly regarded provider of building services throughout South East England and the East Midlands, operating on a project-by-project basis. The company benefits from a highly skilled team and is capable of managing significant commer...
24
|
Apr
|
Automotive parts supplier secures PE backing | BUSINESS SALE
Rimmer Bros, a Lincoln-based restorer and supplier of replac...
24
|
Apr
|
Kitchen firm expands construction sector offering with new acquisition | BUSINESS SALE
Nolte Kitchens UK has completed the acquisition of contracts...
23
|
Apr
|
Furniture retail group acquires stock and IP of e-commerce firm | BUSINESS SALE
Flair Furniture, a retail group based in West Yorkshire, has...
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.