Tuesday, 8 May 2012

UBC Group in administration

The Scottish based UBC Group  with offices in Inverness, Glasgow, Dundee, Bathgate, Stornoway and South Uist has fallen into administration following "challenging trading conditions".  UBC Group employs 277 people in Scotland and has a total turnover of £31m.  The administrators are hoping for a sale of the whole or part of the business. 

Elizabeth Mackay, joint administrator at Zolfo Cooper said: "Unfortunately, the group has suffered from the widespread downturn impacting the construction industry and as a result has experienced a decline in trading performance. The financial position facing the business was such that administration was the last remaining option available to the directors."  In essence this meant that either a winding up petition had been served and was about to be advertised or the companies banks called in the administrators to try and protect their position.

As we have observed Scotland appears to be suffering the most at the moment with a large increase in the number of insolvent companies when compared to last year  for instance a 35% increase in liquidations. 

Nationally poor construction growth contributed the most to a fall in the GDP this Quarter officially putting us back into recession although these figures have been disputed.

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