STUART Robb and Michelle Elliot, partners with FRP Advisory, have been appointed joint administrators of Allma Construction Limited and Centre Plant Limited.
Founded in 1991, Barrhead-based Allma Construction Limited is a long-time supplier of specialist groundwork services to housebuilders. The company operated sites mainly through Scotland’s central belt and Ayrshire.
Centre Plant hired plant and machinery and provided haulage services mainly to its sister company Allma Construction Limited.
The businesses had a combined turnover of £25 million and employed 188 staff.
The administrators explained the companies have experienced a ‘sharp downturn’ in recent activity in the housebuilding sector. This together with rising raw material prices and delays to the start of new developments has caused ‘unsustainable financial and cash flow pressures’.
The businesses have ceased trading and the joint administrators will now market the assets for sale with interested parties being asked to contact the Glasgow office of FRP Advisory as soon as possible.
181 staff have been made redundant, with seven staff being retained to assist the joint administrators in the short term.
Joint administrator Stuart Robb said, “Allma Construction is a long-established and highly regarded supplier of specialist groundworks services to many of the leading housebuilders. Unfortunately, the business has been severely affected by a downturn in the homebuilding markets and rising labour and material costs, and despite the best efforts of the directors in exploring other options, administration was the only option.
“We will now focus on marketing the assets for sale and on providing every possible support to the staff for claims to the Redundancy Payments Office and accessing support agencies such as PACE.”
