Stewart Milne Group, a Scottish housebuilder, has fallen into administration resulting in the loss of over 200 jobs. The company has been dealing with various challenges since the pandemic hit, and despite receiving two bids for the business, both were rejected by the firm’s bank. Six of the company’s subsidiaries are also facing administration. Teneo, the administrator, has stated that hundreds of sub-contractor roles could be hit by the collapse.
Teneo is now searching for alternatives and is exploring options to work with other developers on the completion of unfinished sites. Administrators will contact buyers who have reserved homes from Stewart Milne Group, but have not yet moved in. Current residents with outstanding works have been asked to contact SMHomeowners@teneo.com for further information.
Founder, Stewart Milne, expressed his disappointment but affirmed that he had done everything possible to avert the situation and had tried to secure a better outcome. The business was started in 1975 by the former Aberdeen Football Club chairman, who qualified as an electrician.
The company’s profits had received a boost in the 21/22 financial year, and it had recorded pre-tax profits of £16.5m for the year to the end of October 2022. However, turnover fell year-on-year by £48.7m to £172.4m, and the firm sold less houses which fell by almost 30% to 583. The increase in profit was due to the sale of Stewart Milne’s timber systems business in December 2021.
An additional 58 workers from the north-west England division of the business have been kept due to the process. Teneo has said that they will continue to assess options regarding the company’s Scottish development sites and encourage any interested parties to come forward
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