Kilmarnock-based 聽Worksmart is being wound up with the loss of all 24 jobs in the face of insurmountable commercial pressure.
Worksmart is a commercial interior fit-out and refurbishment contractor for clients operating across a wide range of industrial sectors, including the Scottish government.
Worksmart Contracts managing director and owner Steve Neilson said: 鈥淥ver the past few years, Worksmart has been challenged by several external factors, including recession, Brexit and, more recently, the ongoing covid pandemic.
鈥淭he consequences of these factors have resulted in persistent cost increases for the business, including in materials, labour, utilities, and fuel resulting in the highest inflation rate in over 40 years. This increase in business operating costs has been coupled with recent National Insurance and tax increases.
鈥淭he business has also had to cope with significant bad debts owed to us and, in general, slow payments from some clients over recent months.
鈥淚n parallel to these cost increases, our revenue has been affected by numerous and consistent client delays, uncertainty, and indecision in starting new project work, and workload has stagnated in recent months as a result.
鈥淲ith the ongoing uncertainty in the general economy, we foresee this trend continuing and our work streams being further reduced and delayed.
鈥淎s a result of these factors, and despite our continued efforts, we have taken the regretful step to appoint a liquidator to help manage the situation.鈥�
He added: 鈥淲orksmart has secured and delivered over 拢100m of successful projects over 20 years and we have done our very best in delivering these projects for our clients. We have invested in our team, our business, our industry, our local supply chains, and our local communities throughout. The directors are devastated at having to make this decision.鈥�
Wylie & Bisset managing partner Donald McKinnon added: 鈥淔ollowing Worksmart鈥檚 turnover falling from circa 拢9m to around 拢5m/6m during the pandemic, the directors have arrived at the regretful decision to wind up the business as soon as practicably possible.
鈥淲orksmart鈥檚 directors have reached the view that the business cannot continue to trade due to a number of factors; competition is fierce and profit margins have been squeezed to the extent that the business is no longer financially sustainable.
鈥淔urthermore, it appears that, in response to covid, Brexit and the recession, Worksmart鈥檚 customers are tightening their purse strings, with the result that the level of work required to sustain the business no longer exists.鈥�
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