Ayr firm to shed 30 jobs following £470,000 pre-tax loss

The Daily Record has reported that accounts covering the 2015 year to April 30 filed with Companies House show that the Ayr-based company reported a pre-tax losses of £470,000.

R&R said the loss was “mainly caused by contracts being won with tighter profit margins, increased costs of materials and plant and the use of more specialised sub-contractors due to the nature of the contracts undertaken in the year”.

The firm had booked pre-tax profits of £477,000 for the 2014 financial year on turnover of £7.78 million.

It added that despite swells in activity “at certain points in the year”, clients has shown a reluctance to give the final go-ahead for projects, “in addition to always seeking more competitive prices and exceptional performance”.

R&R Construction (Scotland) said it is now downsizing “due to workload”.

The company notes it employed 67 staff on average in the 2015 year, down from 71 in 2014.

“We have had to pay people off, which has incurred significant costs. Approximately 30 people will lose their jobs,” the company said.

Going forward, the company said it plans to focus activities in the 2016 year “doing work for other companies in the group”, finishing existing contracts and seeking “limited new contracts”.

It notes “significant funds” have been borrowed to fund the company in the future and hopes to “return to profit within one year”.