Jobs blow for town

Rutherglen has been dealt a major blow after a glazing company went to the wall with the loss of 40 jobs.

Westcrowns Contracting Services, part of Westcrowns Group, called in administrators after running into“severe cash flow difficulties”.

In March this year, the company had reported a 12 per cent increase in revenue to £6.7million as well as £4.8m available in the shareholder fund for research.

But pre-tax profits dipped to just £470,000, mainly due to increased investment in research and development.

The company were a supplier and installer of specialist glass and flooring, selling products and services in the UK, Europe and the Middle East.

Parent company Westcrowns Group are not affected by the administration, nor are immediate parent company Westcrowns Ltd, which is also based in Quay House.

Administrators from AlixPartners said: “Administrators were appointed due to the company experiencing severe cash flow difficulties. As a result, the business will cease to trade with immediate effect.

“Forty members of staff have been made redundant and nine have been retained to assist with the wind down of the business and sale of assets.

Westcrowns Contracting Services’2016 accounts were signed off by their auditors with no going concern warning and the directors stated the company had “adequate resources”to meet liabilities as they fall due. The company’s freehold property was valued at £1.3million in March 2016 on an existing-use basis.

Westcrowns Contracting Services noted a £1million bank loan, priced at 5.95 per cent per annum, was repayable in“variable monthly instalments”and was secured against properties, assets and guarantees.