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EXCLUSIVE: Dundee firm McGill set to enter administration putting 120 jobs at risk

A McGill van.
McGill entered administration last summer. Image: Kim Cessford/DC Thomson.

Dundee construction business McGill is preparing to enter administration for the second time in under four years.

McGill Facilities Management Limited has filed a notice of intent to appoint administrators with the Court of Session.

McGill previously collapsed into administration in January 2019, when around 400 staff lost their jobs.

The McGill name and assets, including the company’s headquarters in Harrison Road, were purchased for around £1 million by Dundee businessman Graeme Carling in March 2019.

Graeme Carling, chief executive of United Capital, which owns McGill.
Graeme Carling, chief executive of United Capital, which owns McGill.

The company subsequently made several acquisitions including Alliance Electrical of Forfar, Cupar-based Kingdom Gas Services and Falkirk facilities management company McDougall Group.

All of these businesses fall under the McGill Facilities Management Limited group, which employs around 120 staff.

McGill has hailed several multi-million-pound contract wins and is currently still trading.

However, a company spokesman said its bank had withdrawn its support, leaving it with no working capital.

Statement from McGill

A company spokesman said the company is now following the advice of a restructuring specialist.

He said: “As a fast-growing business, working capital is essential.

“Up until recently, McGill Facilities Management Ltd had a facility provided by Lloyds Bank.

“Recently the business received notice that Lloyds were removing the working capital bank facility due to a change in their perceived risk in the construction sector.

McGill headquarters at Affinity House, Harrison Road, Dundee.
McGill headquarters at Affinity House, Harrison Road, Dundee.

“This is a problem facing the entire building industry.

“With such a quick reduction in working capital, the company is facing significant operational challenges and the board of directors at McGill have appointed a specialist corporate restructuring firm to advise.

“On Friday, the business filed a notice of intent to appoint administrators with the Court of Session.

“McGill continues to operate, delivering work for clients across Scotland.”

United Capital group

McGill Facilities Management Ltd is part of the United Capital group owned by Mr Carling and his wife Leanne, who also have an extensive property portfolio.

Mr Carling previously set out his ambition to own several businesses in the construction sector and share head office functions.

He said his ultimate aim was to own businesses producing half a billion pounds a year in revenue.

Graeme and Leanne Carling
Graeme and Leanne Carling also have an extensive rental portfolio.

Also sitting within the United Capital umbrella is Glasgow-based Saltire Facilities Management, which was acquired in 2020.

This business is not part of the looming administration process. It made a £1.4m pre-tax profit on £25.7m sales last year.

In March this year Mr Carling said he was proud of his achievements with McGill.

He said: “Although the past three years have been tough, we’ve done what we said we would.

“McGill is back doing what it does best, delivering domestic and commercial refurbishment and fit out work for private and public sector clients across Scotland.”

Mr Carling is also president of Lochee United Junior Football Club.

Court action over HMRC debt

The McGill assets were initially purchased from administration by Mr Carling’s company Catalus Energy Investments Ltd, which renamed itself McGill Scotland Ltd.

This business, which changed its name again to Qwerty100 Ltd at the end of last year, is being pursued by HMRC for unpaid liabilities.

The company made no reply to a court petition when the case called in Dundee in June.

Sheriff George Way instructed the wind-up of the business under the Insolvency Act.

Interim liquidators at William Duncan (Business Recovery) Limited have been appointed. They did not respond to a request to comment.

An HMRC spokesperson said: “We take a supportive approach to dealing with customers who have tax debts, working with them to find the best possible solution based on their financial circumstances.”

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