Renewables firm goes under

VG Energy, an East Ayrshirebased renewable energy firm, has folded with the loss of 39 jobs after suffering severe cash flow problems.

A further five employees at the firm, which worked on wind, solar and biomass projects, have been kept on to assist liquidators with the winding up of the company.

Keith Anderson of MLM Solutions, who has been appointed provisional liquidator, said: “Over the last six months a number of external factors have led to a significant drop in orders from commercial customers.

“After a sustained period of trading losses the company has encountered severe cash flow difficulties.”

He said the firm had been affected by uncertainties around a subsidy scheme for renewable heat projects which had seen some commercial customers cancel or delay orders.

“Furthermore the fall in the pound, as a result of the Brexit vote, has increased costs which the company has not been able to pass on to customers. We are working with the employees and liaising with other agencies to protect the interests of the employees at this very difficult time.”

Anderson said the focus will then be on disposing of the company’s assets in order to maximise recovery for creditors.

VG Energy has sold more than 300 wind turbines to customers including land owners and businesses.

Earlier this week administrators were appointed at wind turbine haulage group, West of Scotland Heavy Haulage and West of Scotland Storage.

More than 20 staff at the Cumbernauld-based firm were made redundant with two kept on to assist with the administration being handled by FRP Advisory.