A UK construction company has collapsed into administration after more than a decade in business. Kilmarnock-based Alastair Dick Tarmac Ltd, which specialises in surfacing roads and pedestrian areas, has entered insolvency proceedings after suffering serious cash flow problems.

A petition to place the Scottish road building firm into administration was presented at Kilmarnock Sheriff Court last month. Sheriff Bissett appointed Kevin Mapstone, of restructuring specialists BTG Begbies Traynor, as liquidator to the Ayr Road-based business. The firm, founded in 2013, was unable to continue trading after financial pressures meant it could no longer meet payments to creditors. Thomas McKay, BTG managing partner for Scotland and Northern Ireland, said the collapse reflects the challenging environment many smaller companies are currently facing.

Speaking to the Scottish Herald, He said: "Kilmarnock-based Alastair Dick Tarmac Ltd, which provided surfacing services for roads and pedestrian areas, has been placed in administration, with Kevin Mapstone of BTG appointed administrator on February 23.

"The business suffered from cash flow issues and was unable to continue to trade and sustain payments to creditors.

"It remains a difficult time for SME businesses across Scotland. Seeking advice as early as possible can help provide options and some peace of mind to directors in difficult trading circumstances."

The company's most recent filings on Companies House show its total equity stood at £1.4 million in 2023, down from £1.7 million the previous year.

Its debts also increased during the same period, rising to £1.2 million in 2023, compared with £1 million in 2022.

The Companies House documents stated at that stage 29 people were employed by the Ayr Road firm.

The announcement comes after construction activity declined at a faster pace in February than January, according to the latest Purchasing Managers' Index (PMI) data.

The index,overseen by S&P Global, fell to 44.5 last month, down from January's seven-month high of 46.4.

A reading below 50 shows industry indicates shrinking activity.

The February index marked the 14th consecutive month of lower activity - with the decline worse in February than the previous month.

Tim Moore, Economics Director at S&P Global Market Intelligence, said: "Total industry activity has decreased in each month since January 2025 and the latest decline was faster than seen on average over this period.

"The reduction in output was largely due to sluggish demand conditions, but some firms also noted that exceptionally wet weather had disrupted construction projects.

"Construction companies were hopeful of a turnaround in business activity over the year ahead, with optimism levels hitting a 14-month high in February. This was often linked to forthcoming new projects in the infrastructure and energy sectors, as well as projected improvements in broader economic conditions."