Iain Fraser and Tom MacLennan of RSM Tenon have been appointed as joint administrators to Caithness Stone Industries Ltd, one of the leading quarriers and processors of the world-famous natural building material.

Mined for over 200 years and recognised around the world, Caithness Stone has been used in many landmark buildings and streetscapes, including the modern Scottish Parliament building, and is also widely used in residential bathrooms, kitchens and gardens.

Founded in 1999 Caithness Stone Industries Ltd operated a number of quarries used for excavating the stone and for processing and despatching the finished stone. The company had a turnover of just over £3m in 2012.

However, the administrators said a combination of increasing competition, heavy investment expenditure and rising operating costs resulted in severe and unsustainable cash flow problems.

Iain Fraser, joint administrator and RSM Tenon partner, said: '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.'