THE administrators of Grangemouth demolition specialists Masterton have invited interest in the company’s business or assets “as soon as possible”.
Alan Brown and Bruce Cartwright of PwC were appointed on 9 March 2015 as Joint Administrators to Masterton Limited. Over the last 35 years, the firm has built a strong foundation, carrying out a wide range of complex and hazardous projects across a range of sectors from health boards and pharmaceutical to commercial and heavy industrial engineering plants. Services offered have included hazard and asbestos removal, asset recovery, waste management, building demolition and ground engineering.
In recent years, the firm’s 140-strong workforce had been predominately focused on industrial dismantling and decommissioning in the petrochemical and industrial sectors.
In the lead up to the appointment, Masterton had gradually reduced its employee base with 28 people based in regional locations across the UK made redundant in recent weeks. A small number of staff have been retained to service remaining client contracts.
Alan Brown, Joint Administrator and director at PwC in Scotland, said, “Masterton secured several large contracts in 2012, delivering strong revenue growth. However, it soon became apparent the contracts weren’t as profitable as first hoped, and despite a strong order book, the firm became reliant on its parent company for support. In response, the directors re-evaluated their long term strategy in 2014, seeking to restructure the business through a Company Voluntary Arrangement (“CVA”) with support from a boutique turnaround and restructuring firm. Despite this course of action, the directors were unable to deliver the anticipated revenue streams needed to maintain and develop the business or meet the terms of the CVA proposal.
“After discussions with the existing lenders, suppliers and customers, the directors have taken the difficult decision to reduce the workforce and place the business into administration. Our immediate priority will now be to work with the remaining employees, suppliers and customers to realise the value in the company’s assets and contracts.”