FORTY workers at a Highland builder have been dealt a Christmas redundancy blow after their award-winning company went into administration.

Invergordon-based Carbon Dynamic, which specialises in bespoke timber modular buildings – including a pioneering development of “fit homes” in Alness – could not secure funding to ease cashflow pressures, despite a turnover of £3 million in the year to the end of May.

Its eco-friendly homes are designed to be low energy, highly insulated and constructed from locally-sourced materials, with modules offering low-cost residential and commercial accommodation.

Carbon Dynamic built the 16 specialised homes in an assisted living development at Dalmore in a joint initiative with Albyn Housing Society and NHS Highland.

All are fitted with the latest sensors and Internet of Things (IoT) technology which, amongst other things, can detect when residents suffer a fall.

The company has invested £1.3m in research and development, but underfunding in other areas of the business saw it run into trading and cashflow difficulties as it neared the completion of a 78-module construction project.

Blair Nimmo and Geoff Jacobs of KPMG have been appointed joint administrators, with only two of the 42 staff staying on to help them as they seek offers for the firm’s business and assets, including “substantial” intellectual property.

Nimmo said: “Unfortunately, Carbon Dynamic was unable to continue trading in light of challenging conditions and significant cashflow difficulties.

“This has, in turn, resulted in the redundancies which have been announced. We will be working with all affected employees and the relevant Government agencies to ensure a full range of support is available.

“We are rapidly exploring the possibility of securing a sale of the company’s business and assets and would encourage any interested parties to contact us as soon as possible.”