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Lack of investment by UHI Perth among reasons for aviation firm's collapse
Lack of investment by UHI Perth among reasons for aviation firm's collapse

The Courier

time10-06-2025

  • 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.'

Perth auction for planes and helicopters with bids starting at just £200
Perth auction for planes and helicopters with bids starting at just £200

The Courier

time23-05-2025

  • Business
  • The Courier

Perth auction for planes and helicopters with bids starting at just £200

Planes and helicopters worth tens of thousands of pounds are being sold at auction in Perth. The aircraft, assets of Air Service Training (Engineering) Ltd, are being put up for sale after no buyer emerged for the company. The business, fully-owned by UHI Perth, went into administration last month. It has since emerged that the company's debts exceed £1 million. Administrators from Henderson Loggie have now instructed auctioneers Sweeney Kincaid to sell assets owned by the business. The unusual auction, which has already captured the attention of aviation enthusiasts, includes several planes and helicopters used by students. There is just one catch – none of them are currently able to fly. Lots include a British Aerospace Jetstream 41 turboprop, a Cessna 310 twin engine monoplane and a Cessna f150M airplane. There are also two Augusta A109a helicopters. Bidding for the aircraft started at £200 for the week-long online auction. There are a total of 1,198 items up for grabs. Other lots include Rolls Royce engines, power tools and office equipment. The auction house states: 'All items offered in this auction are strictly sold as non-airworthy and are intended for training, display, or static educational use only. 'These components must not be installed on, or used in connection with, any aircraft that is intended for flight. 'By purchasing, the buyer agrees not to resell or repurpose any item for operational aviation use.' Bidding on one of the A109a helicopters has already soared, reaching £2,000 but the others remain at a few hundred pounds. All the auctions run until 11am on Wednesday May 28. However, the '10-minute extension rule' applies. If a bid is received within 10 minutes of the current closing time, it extends for a further 10 minutes. A 15% buyer's premium applies to all lots. VAT will also be applied. Payment is due by the end of the auction day. Sweeney Kincaid said: 'All assets are sold as is, where is. All engines, parts and aircraft are all incomplete to varying degrees. Viewing is advised prior to bidding. 'For all larger items requiring removal via hangar doors, collections must be agreed by Sweeney Kincaid in advance by appointment. In addition, satisfactory Risk Assessment Method Statements and relevant insurance documents must be provided.' Since its formation, Air Service Training trained more than 190,000 engineers and pilots from approximately 150 countries. The business had 28 members of staff when it went into administration on April 10. Air Service Training was earmarked for £8m of Tay Cities Deal cash to create a national aviation academy.

Emergency summit call for threatened Perth air training facility
Emergency summit call for threatened Perth air training facility

Daily Record

time23-05-2025

  • Business
  • Daily Record

Emergency summit call for threatened Perth air training facility

It comes as administrator says no suitable offer has been made for the Perth Airport based business. A call was made this week for an emergency summit to save jobs and courses at Perth's Air Service Training (AST) facility. It comes as the administrator, appointed early April, said no suitable offer had been made for the business - despite interest from 51 parties. ‌ Assets are to be sold and it is understood staff have been laid off. ‌ The wholly-owned subsidiary of UHI Perth based at the city's airport employed 28 people and had trained 190,000 engineers and pilots from around 150 countries since it was set up in 1931. When AST courses ceased immediately last month – with the exception of the BSc in Aircraft Maintenance Engineering and Management programme set to continue until the end of the academic year – the situation was described as devastating by Perth MP Pete Wishart. Last week, UHI Perth principal and chief executive Dr Margaret Cook resigned amid what was said to be 'an extremely challenging financial landscape.' Perthshire Conservative MSP Murdo Fraser had suggested that £8.1m earmarked in 2020 for a Perth College Aviation Academy for Scotland (AAS) plan, under Tay Cities regional UK and Scottish government funding, could be used to restore cancelled courses. The plans envisaged 540 training places over the first four years of operation. Mr Fraser wrote to Scottish Government Deputy First Minister Kate Forbes this week to call for an emergency summit on how money can best be used to save AST jobs and training courses. ‌ Recent developments, like the resignation of UHI principal, he said, meant the future of aviation training in Tayside is more uncertain than ever. Mr Fraser added: 'I believe an emergency summit on how this money can be best used to save both the jobs and training courses which previously existed at AST, must be urgently arranged. 'The summit, which would include senior figures from both the Scottish and UK Governments, Perth and Kinross Council, UHI Perth and key stakeholders from Scotland's aviation sector, would discuss options on the best way forward on this issue. ‌ 'Holding a summit would see us working together to ensure that Tayside can continue providing world-class aviation engineering training for young people across Scotland.' AST administrator Shona Campbell of Henderson Loggie said this week: '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 Wednesday May 28, 2025. ‌ 'We remain committed to supporting students, ensuring they can complete their courses and receive certification for completed exams.' A Scottish Government spokesperson said yesterday (Thursday): 'Air Service Training was a partner in a wider investment proposal for an Aviation Academy which secured £8.1 million of capital funding from the Tay Cities Region Deal. 'We have been clear this funding will not be lost to the region and we will continue to work with regional partners and the UK Government to explore other viable delivery options. 'It is welcome that UHI Perth has provided funding to ensure that current Aircraft Maintenance Engineering and Management students can complete this academic year, and that work is continuing with alternative providers to identify longer term options for existing students to complete their qualifications.'

UHI Perth principal revealed £1m debts in failed business just days before resignation
UHI Perth principal revealed £1m debts in failed business just days before resignation

The Courier

time22-05-2025

  • 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.'

UHI Perth principal resigns after calls to step down
UHI Perth principal resigns after calls to step down

BBC News

time14-05-2025

  • Business
  • BBC News

UHI Perth principal resigns after calls to step down

The principal and chief executive of UHI Perth has resigned from her post at the Margaret Cook, who held the role for eight years, faced calls to step down following "extreme" financial challenges at the Perth told BBC Scotland News earlier this month it was operating within an increasingly challenging financial environment due to rising college is part of the University of the Highlands and Islands (UHI) network of colleges, specialist teaching centres and research institutes. It has about 7,000 students and about 500 teaching and support Cook had been urged by the GMB union and local MP Pete Wishart to make way for a new her resignation, Dr Cook offered "sincere thanks" to college staff for their hard work and dedication to students. UHI Perth said it had accepted the resignation with immediate Wylie, interim chairman of the management board, said a temporary principal and chief executive was expected to be appointed for a period of up to six said: "UHI Perth, like many other institutions in the education sector is facing an extremely financially challenging landscape, where rising costs are not matched by corresponding increases in funding. "We are working hard to mitigate financial challenges and set a clear path for our sustainable future."Mr Wylie said the college was recruiting students for its autumn intake, and applications remained open. Pete Wishart, SNP MP for Perth and Kinross-shire, said Dr Cook's resignation was the right said: "It has been clear for some time that Dr Cook had lost the confidence of the entire UHI Perth community."Nonetheless, I would like to thank Dr Cook for her service over the years."Fresh leadership and a new vision present the opportunity to implement a proper financial recovery plan to get things back on track."Keir Greenaway, GMB Scotland senior organiser in public services, said new leadership at the college had been needed for some time. Financial pressures Mr Greenaway told BBC Scotland News: "Our members have been voicing serious concerns around the management culture and governance for many years now but been ignored."Their voice should have been heard then and must be heard now. It is beyond time for their concerns to be properly addressed."He called for GMB Scotland to be represented on the board of the college, and said new leadership should be part of a wider review of college Perth is one of a number of Scottish universities and colleges looking at ways of cutting back on spending in response to financial week, the University of Aberdeen announced plans to change the courses it offers, with less popular subjects facing possible cuts under a savings is aiming to address a £5.5m budget gap.

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