ROB MCLAREN BUSINESS EDITOR

“Cash flow problems” is a phrase that is all too familiar for Havelock’s substantial Fife workforce.

It was only last June when the shopfitting firm last experienced near-terminal financial difficulties.

Then listed on the Aim market, Havelock was forced to make a desperate plea for investment to continue as a going concern.

As the clock ticked down to total collapse, it was a great relief when private equity group Rcapital bought the company from administration, saving a workforce that then numbered 320.

Only four months ago, the company’s chief operating officer George McAdam painted an increasingly positive picture for the business.

The boss, appointed by Rcapital, admitted it had been a quiet start to the year but said consumer confidence was returning and the pipeline of work was increasing for the second half of the year.

The firm was being run more efficiently, partly thanks to a flexible working scheme negotiated with union GMB Scotland, which saw employees work four days a week during quieter periods.

Havelock was investing in apprentices and training.

The “building blocks” were now in place for a successful business, Mr McAdam said.

After years of struggles, it seemed like there were brighter times ahead for Havelock.

But, as was seen by McGill’s collapse earlier this year, cash flow is key.

A business can be “fundamentally profitable”, but if there’s not enough money in the bank to pay workers, you have a serious problem.

The other headwind facing Havelock is the decline on the high street.

Retail businesses are looking to cut costs wherever they can and refurbishing their outlets is seldom top of the priority list.

Meanwhile banks, one of Havelock’s major sectors for many years, are closing branches at an alarming rate.

It’s an increasingly difficult trading environment as every business is watching their outgoings as Brexit uncertainty looms.

It’s too early to write off Havelock, but, sadly, it appears the clock is ticking on this Fife business once again.