Tay­side con­struc­tion firm warns over job cuts in fes­tive run-up

The Courier & Advertiser (Angus and The Mearns Edition) - - NEWS - STE­WART ALEXAN­DER

A Tay­side con­struc­tion firm has warned it may be forced to cut jobs in the run-up to Christ­mas.

Kil­mac Con­struc­tion has sent let­ters to work­ers in­form­ing them that their jobs could be at risk.

The com­pany, which has been re­spon­si­ble for a num­ber of An­gus projects, said its hand was be­ing forced by a down­turn in the con­struc­tion in­dus­try.

Bosses said they had been un­able to se­cure a num­ber of vi­tal con­tracts.

The let­ter tells staff to ex­pect a fi­nal de­ci­sion on whether jobs will be cut by the end of the month.

Richard Kil­cullen, who co-founded Kil­mac with busi­ness part­ner At­hole Mcdon­ald in 2004, con­firmed the com­pany was con­sid­er­ing its op­tions, but de­clined to com­ment fur­ther.

It is not known how many work­ers could be af­fected.

Kil­mac signed a deal to spon­sor Dundee FC’S home Dens Park for two years in May.

Fig­ures pub­lished at Com­pa­nies House show the firm gen­er­ated £388,000 profit in 2014, drop­ping to £174,000 the next year. Kil­mac then posted a loss of £4,700 in 2016 and has not pub­lished data on its in­come for last year.

A re­port from ac­coun­tancy firm Hen­der­son Log­gie pub­lished re­cently showed con­struc­tion firms’ profit mar­gins were shrink­ing across the coun­try.

Al­i­son Hen­der­son, chief ex­ec­u­tive of the Dundee and An­gus Cham­ber of Com­merce, said smaller firms in the sec­tor faced a “chal­leng­ing” mar­ket­place.

She said: “The con­struc­tion in­dus­try is one where re­ally large com­pa­nies can af­ford to trim their mar­gins when bid­ding for con­tracts, and that can im­pact smaller firms.

“Big­ger firms do usu­ally use lo­cal com­pa­nies like Kil­mac when they are sub-con­tract­ing work.

“There are sites be­ing cleared in an­tic­i­pa­tion of new projects so we need them com­ing off to help the lo­cal com­pa­nies to thrive,” she added.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.