One of Lanarkshire's oldest family-owned businesses has collapsed less than a year after being acclaimed as one of the UK’s most dynamic and fast-growing companies in a key London Stock Exchange study backed by the First Minister.

Founded in 1976, the Wishaw-based and family-owned Weir & McQuiston (Scotland) Limited provided mechanical and electrical design services, installation, maintenance, testing and consultancy services for the commercial, industrial and residential sectors.

Projects included city centre offices, health boards, local authorities, private companies, community projects, churches, hotels, retail and sports centres. It had been recognised in December as one of a London Stock Exchange's '1000 companies to inspire Britain' which identified the UK's most inspirational small and medium-sized enterprises.

Now Blair Milne and James Fennessey, partners with Azets, have been appointed joint administrators of the business which reported a £2m loss for 2020.

The administrators said: "The administration was caused by unsustainable cash flow problems stemming from wafer thin margins in the construction sector, the cessation of construction activity and the widely reported problems with labour and materials shortages."

The administrators say the business had expanded rapidly in recent years and diversified into new markets, including the supply of consultancy and services for the fast-growing renewables sector.

Staffing peaked at over 200 in 2019, and Weir & McQuiston was firmly established as one of Scotland’s leading M&E contractors.

But on Monday, the administrators said the business had ceased trading with immediate effect with 93 employees made redundant.

Trading as WMQ Building Services (WMQ) and based at McArthur House in Netherton, in December it was included in the annual London Stock Exchange Group (LSEG) report, backed by Nicola Sturgeon and John Glen, the Economic Secretary to the Treasury and City Minister, which showcased 1000 companies which inspire Britain and identifies the country’s most dynamic and fastest-growing businesses.

David Schwimmer, chief executive of the Stock Exchange Group had said that the 1000 companies chosen have "inspired us through their ability to respond to the challenges presented by the global Covid-19 pandemic."

Nicola Sturgeon writing in support of the report said she was "especially pleased" to see a chapter dedicated to Scottish businesses.

Mr Glen acclaimed what he called "this year's collection of innovative, high-growth companies".

After the announcement of the company's inclusion, WMQ managing director Gordon McArthur said the firm didn't know about the report or that they were featuring and it was a "pleasant surprise and a great accolade for all the staff".

The business was also well-known for its leading apprenticeship recruitment and training programme.

The joint administrators said they will market the assets for sale including work in progress and plant and equipment, and are encouraging interested parties to make contact as soon as possible. They said they will also focus on working closely with the Redundancy Payments Office and PACE to minimise the impact on staff affected by the closure.

The Herald:

Blair Milne, joint administrator and head of restructuring with Azets said: “Weir & McQuiston was one of Scotland’s leading mechanical and electrical contracting firms with a quality client base and an excellent reputation across the construction industry.

"The directors did everything possible to keep the business trading, however the scale of cash flow problems and the impact of the lockdown left them with no alternative other than to cease trading and place the company into administration.

"We will now focus on realising as much value from the assets as possible for the creditors and would ask interested parties to contact our Glasgow office as soon as possible.”

Director Gordon McArthur who announced the loss in August believed then that actions taken would "position the business, staff and clients in a stronger position for the future".

The firm's turnover for the year to May 31, 2020 fell by £8m to £12.6m.

The board confirmed that the management accounts for the year ended May 31, indicated that the company's position "continued to deteriorate through that year and that it was insolvent at that date."

Mr McArthur said: "Having successfully traded for over 44 years, the accounts for the year ended May 31, 2020 are disappointing to all stakeholders in the business."

He said many many factors had contributed to the "significant loss" including a "rapid fall in turnover, Covid pandemic, weakness in key appointments and (lack of) profitablity on key contracts delivered over an 18-month period".

He added in an August commentary: "Management have taken strong actions to return the company to its historical financial strength."

Among the actions were cuts of £1.8m through "headcount reduction" and overheads control.

"The Covid-19 pandemic has added to the challenge within the business and the industry," said Mr McArthur. "Awarding of contracts has been slower than typical, material shortages, volatility in key material pricing and productivity due to safe distancing are all challenging contract profitabiity. "However the measures introduced subsequent to this accounting period are enabling the leadership team to make commercial and profitable decisions."

He added: "The focus remains consistent to the prior 44 years of trading being on quality of service, staff and and delivering projects that the company is proud of."