Modular Housing Specialist Goes Into Administration
Eco-friendly Highland construction business, Carbon Dynamic, has gone into administration following ongoing cashflow problems.
Carbon Dynamic, which specialised in low-energy pre-fabricated homes and commercial buildings, chose KPMG restructuring experts Geoff Jacobs and Blair Nimmo after experiencing cashflow problems.
The company, which was founded in 2012 and was forecasting to turnover £6m in the year to May 2019, previously received grant and loan funding from Royal Bank of Scotland-backed Scottish Edge as well as a £1.2m grant from government agency Innovate UK.
Two years ago it raised £87,000 from 51 investors on the Crowd2Fund peer-to-peer lending site, with investors promised an interest rate of 9% over three years.
In June Carbon Dynamic obtained £400,000 worth of backing from Centrica Innovations, a business incubator set up by energy company Centrica.
The company was close to completing a project for the construction of 78 buildings.
Nimmo said that, while all but two of Carbon Dynamic’s 42-strong workforce have been laid off, the aim is to try to find a buyer that could complete the work.
The administrator said: “Unfortunately, Carbon Dynamic was unable to continue trading in light of challenging conditions and significant cashflow difficulties.
“We are rapidly exploring the possibility of securing a sale of the company’s business and assets.”
The assets being sold by the administrators include the company’s intellectual property, unfinished building work, order and customer books, and stock.