Rand Group subsidiary Linpave Building in administration

Linpave Building, a subsidiary of the £40m-a-year turnover Rand Group, has gone into administration.

The firm, which was established in 1981, operates as a main contractor and provides construction-only or design-and-construct services on projects with a value of up to £10m.

It became a member of Rand Group, based in Market Rasen, Lincolnshire, in 1997.

Administrators I D Green and S D Maddison were appointed as joint administrators on 24 November 2008.

Linpave accounted for the lion's share of Rand Group's overall sales - its turnover stood at £18.5m for the year ended 31 March 2008, generating a pre-tax profit of nearly £68,000.

It is not known how whether there will be any redundancies among Linpave's 70-strong workforce.

Rand Group had already indicated in its group results for 2007/08 that Linpave had been experiencing difficult trading conditions for some time.

It said that substantial changes had been made in 2007/08 to Linpave's board and senior management, following poor results in 2005/06 and 2006/07. However it warned that the full effect of the changes would not be seen until 2009.