Almost 200 jobs lost after Barrhead construction firm Allma Construction collapses

Almost 200 people have lost their jobs after an East Renfrewshire construction and plant hire business went into administration.

Allma Construction and Centre Plant, based in Barrhead, has supplied groundwork services to housebuilders since being founded in 1991.

The Centre Plant hired plant and machinery, and provided haulage services to its sister company Allma Construction Limited.

The long-established firms operated sites through the central belt and Ayrshire, with their combined turnover sitting at £25m and 188 staff on their roster.

On Friday, it was announced that administrators from FRP Advisory have been appointed and 181 employees have been made redundant.

Joint administrators Stuart Robb and Michelle Elliot said the companies have experienced a sharp downturn in recent activity in the housebuilding sector.

This together with rising raw material prices and delays to the commencement of new developments is said to have caused unsustainable financial and cash flow pressures.

The businesses have ceased trading and the joint administrators will now market the assets for sale with interested parties being asked to contact the Glasgow office of FRP Advisory.

Mr Robb said: “Allma Construction is a long-established and highly regarded supplier of specialist groundworks services to many of the leading housebuilders.

“Unfortunately, the business has been severely affected by a downturn in the homebuilding markets and rising labour and material costs, and despite the best efforts of the directors in exploring other options, administration was the only option.

“We will now focus on marketing the assets for sale and on providing every possible support to the staff for claims to the Redundancy Payments Office and accessing support agencies such as PACE.”