Builder ERDC collapses into administration

ONE of the Central Belt's best-known construction companies has gone into administration with the loss of 73 jobs.

Financial troubles at ERDC Group were blamed on a significant downturn in activity, delays on some large projects and "persistent difficulties" in obtaining payment from customers.

The news comes in the wake of hundreds of Scottish constructions jobs axed by administrators handling collapsed builder Rok over the past fortnight.

Newbridge-based ERDC, which was founded in 1955, operated civil engineering and building divisions and also had a sports surfacing unit which had carried out work for football clubs including Hearts and St Johnstone.

The company has now ceased trading and all staff have been made redundant apart from six who are helping administrators KPMG to realise assets.

A statement from KMPG said: "The joint administrators are in the process of assessing the company's financial position before looking to maximise realisations for the benefit of all creditors."

In its recently filed accounts for the year to 31 October 2009, ERDC saw turnover fall to 10.9 million from 16.8m and made a pre-tax loss of 783,961 compared to a profit of just 13,602 the previous year. The accounts also showed that a total of 393,750 was owed in loans made by directors to the company along with 3.4m owed to other creditors.

ERDC was taken over in a management buyout from the founding Mitchell family in July 2006 with new joint managing directors Ian Robb and Ivan McKnight taking charge.

At the time of the buyout the company had 200 employees.