Project delays and “challenges in the Aberdeenshire housing market” has resulted in Highland building companies Deveron Homes Limited and Deveron Construction Limited being placed into administration.
The privately-owned firms operate two service lines from their headquarters in Huntly, comprising the development of private residential homes – mainly in Aberdeenshire – and the provision of design and build contracts for housing associations across the North of Scotland.
Deveron Homes was established in 2002 and the construction arm was incorporated in 2008. In recent years, both businesses encountered challenges and delays on a number of development projects.
Blair Nimmo and Geoff Jacobs of KPMG LLP, who were appointed as joint administrators on July 4, said the resulting additional costs, combined with difficult conditions in the sector and the wider challenges in the Aberdeenshire housing market, left the firms with reduced margins, significant levels of debt and a lack of funding to acquire new sites.
Following an assessment of the immediate funding requirement, the directors determined they had no choice but to place both companies into administration to protect the creditors’ position as best as possible.
Upon appointment, the joint administrators said they had no other option than to make five of the firms’ 14 employees redundant with immediate effect.
The remaining employees have been retained to assist the joint administrators to realise the companies’ assets, including four sites currently being developed in Burntisland, Keith, Kemnay and Peterhead, alongside various contracts. The joint administrators are rapidly exploring whether an early sale of assets can be secured.
Blair Nimmo, global head of restructuring for KPMG and joint administrator, said: “Deveron Homes and Deveron Construction are well-known businesses in the North East and provide a significant source of employment in Huntly through the construction supply chain. Disappointingly, market conditions and contract delays have required both businesses to cease trading. We will do everything we can to seek a buyer who may be able to protect the businesses and maximise recoveries for creditors.
“The firms have an integrated infrastructure together with a property portfolio and various ongoing contracts. We would encourage any party who has an interest in acquiring both the businesses and assets to contact us as soon as possible.
“We will be working with employees and relevant government agencies to ensure the full range of support is available to all those affected.”
Anyone with an interest in buying the assets of the company should contact Geoff Jacobs, joint administrator, on 01224 591000.