A Tayside construction firm may be forced to cut jobs in the run-up to Christmas.
Kilmac Construction has sent letters to workers informing them that their jobs could be at risk.
The firm, which has offices in Dundee and Perth, claimed its hand was being forced by a “downturn” in the construction industry.
Bosses have also claimed they have been unable to secure a number of vital contracts.
In the letter – seen by the Tele – staff have been told to expect a final decision on whether jobs will be cut by the end of the month.
Richard Kilcullen, who co-founded the firm with business partner Athole McDonald in 2004, confirmed the firm was considering its options, but declined to comment further.
Kilmac – which signed a deal to sponsor Dundee FC’s home Dens Park for two years in May – is not unique in struggling in the industry.
A report from accountancy firm Henderson Loggie published recently showed construction firms’ profit margins are shrinking.
Figures published at Companies House show Kilmac Construction generated £388,000 profit in 2014, dropping to £174,000 the next year. The firm then posted a loss of £4,700 in 2016 and has not published data on its income for last year.
Alison Henderson, chief executive of the Dundee and Angus Chamber of Commerce, said smaller construction firms were facing a “challenging” marketplace.
She said: “The construction industry is one where really large companies can afford to trim their margins when bidding for contracts, and that can have an impact on the smaller firms.
“Bigger firms do usually use local companies like Kilmac and McGill and others when they are sub-contracting work.
“There are sites being cleared in anticipation of new projects so we need them coming off to help the local companies to thrive.”
Ron Fraser, interim executive director at industry body Construction Scotland said: “As overall public sector investment in infrastructure has slowed following the completion of several major projects, some SME civil engineering companies have been experiencing difficulty this year in finding work at reasonable margins.
“Economic infrastructure investment is known to deliver significant increases in economic growth, beyond its face value, due to the enabling effect it has on other sectors, and the Scottish Government has recently announced increased funding for such investment that would mean an increase of around £7bn by the end of the next parliament.
“Construction Scotland will be working closely with the Scottish Government and its agencies to ensure that this additional investment is procured in ways that help grow a more sustainable, productive and innovative industry and, in particular, that provide suitable opportunities for SMEs.”
It is not known how many workers could be affected.