Latest news with #MargaretCook
The Courier
10-06-2025
- Business
- The Courier
Lack of investment by UHI Perth among reasons for aviation firm's collapse
A lack of investment by UHI Perth is among the reasons for the failure of a Perth aviation business with 28 staff, the administrator has claimed. Based at Perth Airport, Air Service Training (Engineering) is one of the longest-operating civil aviation training organisations in the world. The company entered administration on April 10 with debts of more than £1 million. A new report by administrator Shona Campbell, of Henderson Loggie, provides new detail on the reasons behind the business failure. The report said there had been a 'material' decline in student enrolments, particularly among self-funded international candidates. This was attributed to tightening visa restrictions, licensing challenges and global market competition. It also noted the failure to replace the income of a significant Middle Eastern military training contract. There was the additional challenge of rising operating costs. The lack of investment by UHI Perth was also emphasised. It stated there was 'limited capacity' to reinvest in training assets and marketing. It adds: 'The business entered administration due to sustained financial losses, inability to replace major revenue streams, and a lack of investment required to remain competitive in a changing aviation training market.' The report shows a decline in turnover during the 2023/24 year. Sales were almost £2m in 2022 and 2023 but revenue fell to £1.6m in the year to July 31 2024. The 2023/24 year showed a large pre-tax loss of £359,000. The company continued to lose money in the 2024/25 year. The administrator's report said: 'Management accounts for the period ending April 10 2025 showed turnover of £1.275m and a net loss of £172,354, resulting in the company becoming balance sheet insolvent.' Directors, including UHI Perth principal Margaret Cook, who stepped down last month, explored a sale of the business. The report adds: 'Once those negotiations failed to provide a satisfactory outcome, the directors concluded that the company was insolvent.' After the administration started, UHI Perth provided funding to the administrator to allow some BSc courses to be completed to the end of the 2024/25 academic year. However, the report notes 'there are a number of students that had pre-paid for courses, or whose sponsoring employers had pre-paid for courses, that have not been fulfilled by the company.' The administrator arranged the auction of assets in the business, including helicopters. This auction raised a six-figure sum. It is estimated that employees are owed £375,000 for redundancy pay in lieu of notice. More than £1 million is owed to unsecured creditors. It is expected there will be a partial payment made to unsecured creditors at the end of the administration process. A spokesperson for UHI Perth responded to the administrator's comments about lack of investment. She said: 'UHI Perth provided support to AST within the limits of what was legally and financially permissible for a publicly funded charity. 'We are not permitted to use public money to subsidise commercial operations, including those of wholly owned subsidiaries such as AST. 'This meant that the level of investment required to reposition AST in a highly competitive and rapidly evolving global market was not achievable without significant external funding.'
The Courier
22-05-2025
- Business
- The Courier
UHI Perth principal revealed £1m debts in failed business just days before resignation
More than £1 million is owed by a Perth aviation firm which collapsed into administration last month. Air Service Training (Engineering) Limited was fully owned by UHI Perth. It trained thousands of pilots and aircraft engineers since it was established in 1931. In one of her last acts as principal and chief executive of UHI Perth, Dr Margaret Cook provided a 'statement of affairs' estimating the debts in the business. Dr Cook resigned with immediate effect from her post at UHI Perth last week. It followed the revelation that the institution is battling a £2m deficit. The statement of affairs is a document provided by a company director giving their estimation of assets and debts at the time of administration on April 10. The document was provided by Dr Cook on May 8, and has now been lodged at Companies House. She stepped down just six days later following calls for her to resign from the crisis-hit organisation. The document shows current and former employees are owed around £417,000 in wages, holiday pay and pension payments. More than £158,000 is owed to HMRC for VAT, national insurance, corporation tax and student loan repayments. Debts listed as 'consumers claiming amounts paid in advance' – students and business who had paid for training – is another £486,000. The total Air Service Training debts are estimated as £1,053,000. Assets within the business expected to raise around £250,000. Assets include a cash balance of £133,000, trade debtors, machinery and vehicles. Dr Cook resigned as a director in Air Service Training on May 13. Since its formation, Air Service Training has trained more than 190,000 engineers and pilots from approximately 150 countries. The business had 28 members of staff when it went into administration. Air Service Training was earmarked for £8m of Tay Cities Deal cash to create a national aviation academy. Administrator Shona Campbell, of Henderson Loggie, recently said a closing date had been set for the business after dozens of enquiries. However, no offer emerged. She said: 'Despite interest from 51 parties, no suitable offer was received for the purchase of the business as a whole. 'As a result, an online auction of Air Service Training (Engineering) Limited's physical assets is now live and will close at 11am on May 28. 'We remain committed to supporting students, ensuring they can complete their courses and receive certification for completed exams.'
The Courier
09-05-2025
- Business
- The Courier
EXCLUSIVE: Three UHI Perth staff fly to China as university tackles financial crisis
Three UHI Perth staff members flew to China during the £2 million financial crisis at the university. The Courier can reveal two employees travelled to far-east Asia on Wednesday while another was already in the country for a holiday. Principal Dr Margaret Cook was originally supposed to join them but has stayed at home for 'health reasons'. It's understood she is currently on a leave of absence. UHI Perth confirmed £8,000 of university cash had been budgeted for the trip abroad. The staff members will be in China for around 10 days each, 'depending on individual travel arrangements'. Nicky Inglis, the director of curriculum for business and science, is leading the foreign visit. He will represent UHI Perth at three graduations for the university college's students in China. The senior staff member will also attend business meetings to discuss the institution's international programmes. Mr Inglis is being accompanied by Heidi Hope, a sector manager who is exploring new academic opportunities for UHI Perth in China. Lin Shen, the university's director of partnerships, is also abroad as a translator and to 'explore new opportunities for collaboration' in the far-east nation. In 2019, UHI Perth bosses including principal Dr Cook were criticised for taking business class flights to China while jobs were at risk. Senior managers made multiple long-haul flights to the Asian country even though staff feared being made redundant. The new staff visit comes while UHI Perth considers measures to cut its £2 million deficit. We revealed last week how the university college suggested axing all degrees, before this was then 'strongly dismissed'. The institution's finance director Gavin Stevenson resigned in April. A UHI Perth spokesperson said: 'UHI Perth – as part of UHI – delivers education opportunities to fee-paying international students. 'As part of this commitment, three members of our staff have travelled to China this month to support our ongoing international partnerships. 'These efforts contribute to our broader vision of international education, where final-year students from our partner institutions in China come to the UK to complete their studies, paying international student fees.'
The Courier
06-05-2025
- Business
- The Courier
UHI Perth principal faces resignation calls after degree axe row
UHI Perth principal Dr Margaret Cook is facing calls to quit her top post due in a row over finances at the university. Perthshire SNP MP Pete Wishart said the crisis-hit institution needs new leadership and urged Dr Cook to seriously consider her position. 'The principal must take responsibility for this mess,' he told The Courier. The Courier revealed last week that UHI Perth put forward a proposal to axe all university degrees to help plug a £2 million deficit at a board meeting on March 6. University bosses told us they were 'carefully exploring all options' to tackle the financial black hole. They quickly U-turned and said this was 'strongly dismissed' during the very same meeting when the suggestion was first made. In a letter to staff and students, Dr Cook said a 'board member' had came up with the idea of stopping higher education provision. Yet it was Dr Cook herself who delivered the presentation where this was put forward as part of a possible recovery plan. A statement later sent to The Courier omitted any mention of a 'board member'. SNP MP Mr Wishart said: 'The whole sorry saga at UHI Perth is becoming embarrassing and cringeworthy. 'The contradictions in her various statements are there for all to see. 'It's now time for her to seriously consider her position and for new leadership at the college. 'There seems to be absolutely no doubt Margaret Cook should step down now.' Mr Wishart wrote to Dr Cook on Monday asking to see any papers or slideshows which outlined the proposals to axe degrees. He wants to clarify who came up with the controversial idea – and why it was deemed necessary to discuss this. The Perth and Kinross-shire MP wrote: 'Many of my constituents remain deeply concerned about the current financial difficulties at the college and how the institution is being led.' A spokesperson for UHI Perth said: 'The board of management requested Dr Margaret Cook to present a draft of the UHI Perth Recovery Plan and facilitate discussions on potential strategic decisions. 'During this meeting, the topic of discontinuing our higher education delivery was raised, discussed collectively, and strongly dismissed.' The university added: 'We responded previously to Mr Wishart's concerns and reiterate that UHI Perth has no intention of ceasing our provision of degrees.' Last week we reported UHI Perth's finance chief had quit while the institution wrestles with its £2 million deficit. It means the university is currently trying to devise a recovery plan without a dedicated finance director in post. Gavin Stevenson, who resigned on April 18, had only taken up the post a year earlier. We also reported last month how a Perth aviation firm linked to the university went into administration last month. UHI Perth chiefs were branded 'utterly disastrous' for failing to respond to warnings that this could happen seven months earlier. The under-fire university also shut its nursery last year due to fears over its financial sustainability.
