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.”
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