| Industry | Construction |
|---|---|
| Founded | 1908 |
| Defunct | 2003 |
| Fate | administration |
| Headquarters | Glasgow |
Key people | Alexander Dundas (Chairman 1908-1937) Kenneth Dundas (Chairman 1937-1950) |
Melville Dundas was a major Scottish construction company.
| Industry | Construction |
|---|---|
| Founded | 1908 |
| Defunct | 2003 |
| Fate | administration |
| Headquarters | Glasgow |
Key people | Alexander Dundas (Chairman 1908-1937) Kenneth Dundas (Chairman 1937-1950) |
Melville Dundas was a major Scottish construction company.
The business was established by Alexander Dundas in 1908; it was incorporated as Melville Dundas & Whitson during 1932. [1] Kenneth Dundas took over as chairman of the business in 1937. [1] During the Second World War the company was one of the contractors engaged in building the Mulberry harbour units. [2]
During 1981, the company was acquired by F J C Lilley plc, [3] which traded as Lilley plc from April 1989. [4] until it went into receivership during January 1993. [5] [6] Melville Dundas was bought out of receivership by its management team. [7] [8] The revived company was able to achieve profitable operations early on. [9] In June 1999, the company recorded a pre-tax profit in excess of £1 million, a 24 per cent increase over the previous year. [10]
Record growth was achieved during 2000 although profitability decreased, which was attributed to protracted contractual negotiations. [11] As early as 2001, Melville Dundas had encountered financial hardship due to difficulties encountered in collecting due payments for jobs which were disputed. [12] During 2002, in response to declining turnover, the firm opted to focus on smaller and less risky jobs. [13] [14] In July 2002, following a sharp drop in profits that placed the firm in breach of a covenant to its lenders, Melville Dundas was compelled to renegotiate the terms of its bank borrowings. [15]
During May 2003, Melville Dundas went into administration. [16] [17] The auditing firm Ernst & Young was brought in to administrate the process; Carillion was amongst the several parties interested in acquiring assets that formerly comprised the company. [18] [19] Ernst & Young partially attributed the collapse to the firm's management having overstated the value of multiple contracts. [20] In August 2003, a group of the company's creditors publicly called for an investigation into the collapse to be conducted by the Department of Trade and Industry. [21] Legal ramifications pertaining to employer payments, in spite of the firm's collapse, were still ongoing in late 2007. [22] [23]
Major projects undertaken by the company included the George V Bridge, Glasgow completed in 1928, [24] the Glasgow College of Building and Printing completed in 1964, [25] the extension to the Glasgow Dental Hospital and School completed in 1970, [26] University Hospital Crosshouse completed in 1978, [27] and the conversion of Queen's Hall, Edinburgh completed in 1979. [28]
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