Spittal-based Caithness Stone Industries has been placed into administration, RSM Tenon has said.

The decision was made following severe cash flow problems due increasing competition, heavy investment expenditure and rising operating costs.

The Spittal-based firm, which was founded in 1999, is a leading supplier of stone products for the building trade. Some of its prominent projects included the Scottish Parliament, Belfast Concert Hall and the British Memorial Garden in New York.

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It also operated three quarries in Scotland and had generated a turnover of more than £3m in 2012.

In a statement, joint administrator Iain Fraser of RSM Tenon said: "Caithness Stone Industries had a high profile as one of the leading suppliers and processors of Caithness Stone.

"The company invested heavily in new technology in order to improve the efficiency of extraction and processing, and successfully diversified into new residential markets.

"We will now undertake a thorough review of Caithness Stone Industries Ltd, the results of which will determine the next steps for the administration."

(JP/CD)