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