Contract losses see firm collapse with 45 jobs lost

Civil engineering and power solutions contractor NRS UK has fallen into administration, with the loss of 45 jobs.

Michelle Elliot and Stuart Robb from business advisors FRP Advisory have been appointed joint administrators of the Scottish firm, which had an annual turnover of £33m prior to its collapse.

The contractor – full name Noel Regan & Sons (NRS) UK – blamed soaring supply-chain costs, magnified by severe losses on fixed-price contracts for its downfall. Administrators noted the knock-on effect of the contract losses led to “unsustainable cashflow and financial problems”.

The Livingston-based company, whose recent schemes include the St Andrew’s Cross substation in Glasgow and the Seagreen offshore wind farm, has ceased trading with immediate effect, with only two of its former 47-strong staff being retained to assist with the administration process.

FRP Advisory partner and joint administrator Michelle Elliot said: “NRS UK is an established and highly-regarded civil engineering and energy construction specialist with an impressive portfolio of projects across Scotland and England.

“The business has been exposed to the well-documented problems of surging costs affecting supply chains and from fixed-price contracts that resulted in involuntary losses. Despite the best efforts of the sole director, the business faced a range of cashflow challenges in recent weeks due to these issues and could not continue trading.”

FRP Advisory has called on interested parties to contact the administrator regarding offers for the business. It also aims to ensure all employees receive “every assistance” to register any claims they may have with the Redundancy Payments Office (RPO), and with accessing support services from PACE and other government bodies.

The contractor’s latest annual results, filed up to 31 December 2020, showed it posted losses of £1.9m over the year on turnover of £18.2m.

The accounts state that it had made a “significant loss” of £1.85m on a “contractual compensation event” relating to a contact that concluded in early 2020.

It had forecasted turnover of £32.8m for 2021 and £32.7m in 2022.

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