Roy Homes goes into administration

THERE was a dramatic development only hours after it was announced Inverness-based builder Roy Homes had gone into administration.

Serious cash flow problems were blamed and the timber frame arm of the company was also placed in administration.

Both companies have ceased trading and all 17 staff have been made redundant with immediate effect said administrators FRP Advisory in the morning.

Roy Homes specialised in self-build homes and was the largest supplier of bespoke homes across the north of Scotland.

Joint administrators Iain Fraser and Tom MacLennan, partners with FRP Advisory, made the announcement and added they were looking for someone to buy the assets and goodwill to allow customers to have their homes completed.

But hours later a release from a north PR firm stated that a third company, Roy Homes Developments Ltd, which shared a common management team with Roy Homes Ltd, has made an offer to the administrators to acquire the assets of two sister companies which have gone in to administration.

The releases added: "Chris Barnett, managing director of Roy Homes Developments Ltd, which is not included in the administration and continues to trade profitably, said today: 'We are working on a positive basis with the administrators, FRP Advisory, and have made an offer in terms of which we hope to reach agreement to acquire the land bank, vehicles, contracts, premises and other assets of Roy Homes Ltd and Roy Homes Timber Frame Ltd.

'We are also liaising with the National House Builders Council (NHBC) since if we do successfully purchase the assets of the companies in administration our intention is to ensure that no clients are left without their projects completed.

'Reaching a successful agreement would enable us to retain all existing office staff and re-launch the business as one entity rather than three separate trading firms.

'Following a restructuring, we would be in a much stronger position to take the business forward, building on our recognised quality and award-winning history.'”

Martin Roy, a director or Roy Homes Ltd added: “Providing our offer is accepted and NHBC support is secured, we should be able to ensure that all existing clients will have their house project delivered with minimal disruption to their program. All future projects with Roy Homes Developments Ltd would be unaffected. We are extremely pleased to enjoy the confidence and support of our staff, our key suppliers, our key sub contractors and the existing management team.

"These last 12 months have been difficult for us, but we can now move forward with confidence and fresh vigour. Our ability to design and build dream homes in the Highlands and North East, in classic or contemporary styles, is at the core of what Roy Homes Developments Ltd will continue to offer.

Roy Homes commenced trading in 1979 and supplied a full design-to-build service for self-build timber homes.

Roy Timber Frame Ltd was founded in 2011 and supplied timber frame kits to Roy Homes. The two businesses have helped hundreds of customers to plan, design and build their own homes.

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