Redundancies at Invergordon firm Carbon Dynamic

Carbon Dynamics' modular homes in Alness

Forty people have been made redundant after a Highlands-based construction firm was placed into administration.

Carbon Dynamic in Invergordon specialised in designing and manufacturing bespoke timber modular buildings.

Its modules were used in the building of a new community in Alness. The homes use Artificial Intelligence to help detect the onset of ill health.

The administrators said firm had experienced "cashflow pressures".

Gail Ross, SNP MSP or Caithness, Sutherland and Ross, said it was "devastating news" about the redundancies.

She said she would be raising the situation as "a matter of urgency" at the Scottish Parliament.

Blair Nimmo and Geoff Jacobs of KPMG LLP were appointed as joint administrators on Thursday.

Just two members of staff have been retained at Carbon Dynamic to help the administrators, who are seeking offers for the firm's business and assets.

Since the company's inception in 2012, the construction company had invested about £1.3m in research and development to develop its modules.

Carbon Dynamics manufactured bespoke timber modular buildings

Carbon Dynamic's turnover grew to £3m in the year to May 2018, and was expected to reach £6m by May 2019.

However, despite significant research and development investment, underfunding in other areas of the business meant the company ran into trading and cashflow difficulties as it was nearing completion of a major project for the construction of 78 modules.

The director was unable to secure funding to address the firm's difficulties and had no other option than to place the company into administration.

Administrator Mr Nimmo said: "Unfortunately, Carbon Dynamic was unable to continue trading in light of challenging conditions and significant cashflow difficulties.

"This has, in turn, resulted in the redundancies which have been announced.

"We will be working with all affected employees and the relevant government agencies to ensure a full range of support is available."

He added: "We are rapidly exploring the possibility of securing a sale of the company's business and assets and would encourage any interested parties to contact us as soon as possible."