SGM Group in administration
Page last updated at 7:00 am, Thursday, December 14th, 2006
Deloitte corporate recovery specialists, John Reid and Ian Brown, have been appointed as Joint Administrators of SGM Group Limited, Scottish Grass Machinery Limited, SGM Finance Limited and Select Contract Maintenance Limited (the Group).
The Group supplies commercial grass cutting equipment and servicing on finance and operating leases UK-wide to the public and private sectors, as well as the sale of grass cutting equipment and servicing from its dealership in Scotland. The Group operates from a head office and warehousing facility in Inverkeithing and has 15 service depots across the UK, employing approximately 120 staff.
Administrator John Reid, said, “The Group has been in financial difficulty for a considerable period of time and following its inability to secure additional funding over the winter low season, the directors have concluded they cannot continue to trade.
“Despite the Group’s problems however, it is a dominant player in the UK market, so our strategy is to continue trading the businesses, review the financial position and operations of the Group and explore the possibility of rescuing the Group or selling all or part of the businesses.”
Scottish Grass Machinery (SGM) was appointed as approved dealers of Toro commercial and golf products and Hayter grounds products for northern Scotland at the beginning of this year and sold £1.5m of Toro and Hayter kit in the first six months.
In the summer a highly successful product demonstration tour attracted over 200 customers to venues at Nairn Dunbar Golf Club, Downfield Golf Club and SGM’s new service centre in Sauchen, near Aberdeen.
Featuring in the £1.5 million new sales were deals for Toro equipment with golf clubs at Royal Dornoch, Balumbie in Dundee, Murcar Links in Aberdeen, Dalfaber in Aviemore, Inchmarlo, Taymouth Castle, Skibo Castle and Carnoustie, the British Open venue in 2007.
Sales of Hayter equipment were secured with the local authorities for Aberdeenshire, Aberdeen City and Angus.
SGM Group www.scottishgrass.co.uk