One of Scotland’s most prominent house-builders, Stewart Milne became the first major failure in the UK construction industry this year. The company fell into administration on 9th January, 2024.
Operating across northeast Scotland, central Scotland, and northwest England, the companies ceased trading immediately. This has resulted in the loss of over 200 jobs and jeopardised numerous others in the supply chain.
Administrators from Teneo have taken charge of the situation. Multiple attempts to find a buyer have proved futile so far. Multiple subsidiaries, including Stewart Milne Homes North West England Limited and Stewart Milne Homes Central Scotland Limited, also entered administration. Unfortunately, more than 217 roles were made redundant shortly after the administrators’ appointment.
Joint administrator Adele MacLeod of Teneo attributed the situation to the downturn in the UK housing market and an unsuccessful sales process. Over the last year, the rising cost of living crisis and increasing interest rates have put the construction industry at the top of the UK’s insolvency register. After the news of this administration, Stewart Milne has halted work on all current projects. While they are continuing to assess all sale options in respect of the group’s Scottish development sites, a favourable outcome in the near future seems unlikely.
Founder and chairman, Stewart Milne, who sought to retire and had attempted to sell the business in 2022, expressed devastation at the unexpected outcome. Despite significant interest and two submitted bids, the bank withdrew its funding and rejected the offers received.
The group’s latest filed accounts, up to October 31, 2022, reported a turnover of £172 million and a pre-tax profit of £16.5 million. Following the administration, the focus lies on estimating the value of the group’s assets and facilitating an orderly wind-down of the business.
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