Blair Nimmo and Geoff Jacobs of KPMG LLP were appointed as Joint Administrators of CLDB Limited on 6 December 2018.
Trading under the name “Carbon Dynamic”, the award-winning Invergordon company specialises in the design and manufacture of bespoke timber modular buildings. Designed to be low energy, highly insulated and constructed from locally sourced materials, the modules offer eco-friendly, low cost residential and commercial accommodation. Contract sizes range from one module to more than 70.
Having invested circa £1.3million in research and development to develop the modules since the company’s inception in 2012, Carbon Dynamic’s turnover grew to £3million in the year to May 2018, and was expected to reach £6million by May 2019.
However, despite significant R&D investment, underfunding in other areas of the business meant the company ran into trading and cashflow difficulties as it was nearing completion of a major project for the construction of 78 modules. The director was unable to secure funding to address cashflow pressures and had no other option than to place the company into administration.
At the time of the appointment, the business employed 42 people, all of whom were based at its leased facilities in Invergordon.
Following the appointment, 40 employees have been made redundant. Two staff have been retained to assist the Joint Administrators as they seek offers for the firm’s business and assets, which principally comprise substantial amounts of intellectual property, part-complete modules, order and customer books, equipment and raw material stock.
Blair Nimmo, Joint Administrator and KPMG’s global head of restructuring said:
“Unfortunately, Carbon Dynamic was unable to continue trading in light of challenging conditions and significant cashflow difficulties. This has, in turn, resulted in the redundancies which have been announced. We will be working with all affected employees and the relevant government agencies to ensure a full range of support is available. We are rapidly exploring the possibility of securing a sale of the company’s business and assets and would encourage any interested parties to contact us as soon as possible.”
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