FRP chosen for NRS administration

16 September 2022 Consultancy.uk 2 min. read

The collapse of a Scottish construction firm has seen 45 jobs axed. NRS UK’s collapse was caused by inflationary pressures and supply chain issues, according to administrators from FRP Advisory.

FRP Advisory Partners Stuart Robb and Michelle Elliot were installed for the administration of Livingston-based NRS UK in the first week of September. Founded in 2010, the firm had formerly employed 47 staff, and boasted a turnover of £33 million. Recent projects include the St Andrews Cross substation in Glasgow, Seagreen Offshore wind farm off the Angus coast, and the Hunterston substation.

However, a release from FRP said the construction firm’s downfall has been caused by spiralling supply chain costs in 2022, magnified by severe losses stemming from fixed price contracts. This had all resulted in recent unsustainable cash flow and financial problems. As a result, the business ceased trading with immediate effect, while 45 staff were made redundant.

FRP chosen for NRS administration

Michelle Elliot, Partner and joint administrator said, “NRS UK is an established and highly regarded civil engineering and energy construction specialist with an impressive portfolio of projects across Scotland and England. Despite the best efforts of the sole director, the business faced a range of cash flow challenges in recent weeks due to these issues and could not continue trading. We will now market the business and assets of the business for sale and would encourage any interested parties to make contact as soon as possible.”

Two employees have been retained to assist FRP in the short term with the administration process. Meanwhile, Elliot added the administrators would “ensure the employees receive every assistance to register any claims that they may have with the Redundancy Payments Office (RPO) and with accessing support services from PACE and other government bodies.”

However, some employees from NRS’ pool feel let down by the way the firm folded. As work was stopped on sites, it has been reported that all the company’s plant and equipment was removed from jobs. According to one self-employed worker, contractors had worked to try and support the business through its difficult period – but its sudden closure left them in an equally difficult position.

Speaking to Construction Enquirer, one worker said, “We all feel shafted by what has happened. A lot of site workers and suppliers have been helping them out when it was obvious they were going through a tough time then bang – sites are shut and all their kit is spirited away leaving us all out of pocket.”