Agricultural machinery firm falls into administration
Tue, 19 Mar 2024 | ADMINISTRATION
Balgownie Limited and Balgownie Rentals Limited, a pair of businesses providing machinery to the agricultural, construction and ground care industries, have fallen into administration.
The businesses can trace their history back to 1907 and are based in Aberdeenshire, with depots in Inverurie and Turriff. In Balgownie Limited’s accounts for the year to December 31 2022, it reported turnover of £25.6 million, up slightly from £25.1 million a year earlier, while operating profit increased from £383,717 to £539,375.
However, the business has experienced cashflow difficulties in recent months, with Managing Director Mike Singer saying that this led to the “difficult decision” to call in administrators, with Richard Bathgate and Graeme Bain of Johnston Carmichael appointed as joint administrators on March 15.
Upon their appointment, 24 employees at the companies were made redundant, with 17 staff retained to assist the joint administrators in marketing and selling the assets.
Calling Balgownie a “well-respected company”, joint administrator Richard Bathgate said: "It has a trading history as far back as 1907 and is known for its quality and outstanding customer service.”
“Unfortunately following the identification of cashflow difficulties, the board of directors has had to place both Balgownie Limited and Balgownie Rentals Limited into administration."
Bathgate continued: “I would encourage any party who may be interested in acquiring the business and its assets to contact Neil Woodgreaves of Johnston Carmichael.”
“This is an opportunity to acquire the business and assets of a highly respected, long-established business which operates at its wholly owned trading premises in Inverurie and Turriff, Aberdeenshire.”
In its 2022 accounts, Balgownie Limited’s fixed assets were valued at £2.1 million and current assets at £9.8 million, with total equity at the time standing at £1.7 million. Balgownie Rentals Limited, meanwhile, had fixed assets valued at close to £528,000 during the same period, with current assets valued at slightly over £100,000 and total equity amounting to £47,538.
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