A total of 405 jobs are being lost at the company

According to receivers, electrical and mechanical engineering firm DH Morris had been struggling to meet its funding targets.

The Cumbernauld-based company was founded in Dundee in 1926 and employs about 471 people from five Scottish locations.

It also has premises in Edinburgh, Inverness, Dundee and Beith.

'Unfortunate cuts'

Colin Dempster, of Ernst & Young, said: "It is unfortunate that we have had to make these job cuts to a long established business but the company has been trading at a loss that cannot be sustained."

The administrators said the firm, which deals in the installation of heating systems, lighting and air conditioning, had been unable to meet "a substantial increase in funding requirements" following a review of contracts.

The group expanded over recent years to encompass several other companies and reported a turnover of almost �30m in 2000.

Clients included oil giants Shell and BP.

All 13 member companies have gone into receivership.