Alan Brown and Bruce Cartwright of PwC were appointed on 9th March 2015 as joint administrators to Masterton Limited, the Grangemouth-based demolition specialist that is part of the Blackwell Group.
Masterton grew its revenues from £10m in 2011 to £16m in 2012 and was heading for £25m in 2013 before problems began to appear with the profitability of the business.
In the lead up to the appointment of administrators, Masterton had laid off 28 people based in regional locations across the UK. A few employees have been retained to service remaining client contracts.
Joint administrator Alan Brown said: “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."
Explaining the demise of the firm, he 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 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.”