Caithness Stone Industries placed in administration

High-profile stone company falls victim to increasing competition and rising operational costs

ONE of the leading quarriers and processors of the world-famous Caithness stone, Caithness Stone Industries Ltd, have been placed in administration with Iain Fraser and Tom MacLennan of RSM Tenon appointed as joint administrators.

Quarried for more than 200 years and recognized around the world, Caithness Stone adorns many landmark buildings and streetscapes, ranging from the streets of Boston and the British Memorial Garden in New York to the modern Scottish Parliament building.

Long-established in the public and commercial buildings markets, Caithness Stone has, more recently, also been widely used in residential bathrooms, kitchens and gardens, and has a high profile as a premium natural brand.

Founded in 1999 and based in Spittal, Caithness, in the far north of Scotland, Caithness Stone Industries Ltd operated three quarries and had a turnover of just over £3 million in 2012.

However, a combination of increasing competition, heavy investment expenditure and rising operating costs is said to have resulted in severe and unsustainable cash flow problems for the company.

Commenting on the situation, Iain Fraser said: ‘Caithness Stone Industries had a high profile as one of the leading suppliers and processors of Caithness Stone. The company invested heavily in new technology in order to improve the efficiency of extraction and processing, and successfully diversified into new residential markets.

‘We will now undertake a thorough review of Caithness Stone Industries Ltd, the results of which will determine the next steps for the administration.’